Correlation Between NuStar Energy and Plains All
Can any of the company-specific risk be diversified away by investing in both NuStar Energy and Plains All at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NuStar Energy and Plains All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NuStar Energy LP and Plains All American, you can compare the effects of market volatilities on NuStar Energy and Plains All and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in NuStar Energy with a short position of Plains All. Check out your portfolio center. Please also check ongoing floating volatility patterns of NuStar Energy and Plains All.
Diversification Opportunities for NuStar Energy and Plains All
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between NuStar and Plains is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding NuStar Energy LP and Plains All American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plains All American and NuStar Energy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on NuStar Energy LP are associated (or correlated) with Plains All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plains All American has no effect on the direction of NuStar Energy i.e., NuStar Energy and Plains All go up and down completely randomly.
Pair Corralation between NuStar Energy and Plains All
If you would invest 1,644 in Plains All American on August 28, 2024 and sell it today you would earn a total of 113.00 from holding Plains All American or generate 6.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
NuStar Energy LP vs. Plains All American
Performance |
| Timeline |
| NuStar Energy LP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Plains All American |
NuStar Energy and Plains All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NuStar Energy and Plains All
The main advantage of trading using opposite NuStar Energy and Plains All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NuStar Energy position performs unexpectedly, Plains All can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Plains All will offset losses from the drop in Plains All's long position.| NuStar Energy vs. MPLX LP | NuStar Energy vs. Western Midstream Partners | NuStar Energy vs. Plains All American | NuStar Energy vs. Genesis Energy LP |
| Plains All vs. Genesis Energy LP | Plains All vs. Western Midstream Partners | Plains All vs. Hess Midstream Partners | Plains All vs. Enterprise Products Partners |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |