Correlation Between NYSE Composite and NuStar
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By analyzing existing cross correlation between NYSE Composite and NuStar Logistics 6, you can compare the effects of market volatilities on NYSE Composite and NuStar 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 NYSE Composite with a short position of NuStar. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and NuStar.
Diversification Opportunities for NYSE Composite and NuStar
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and NuStar is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and NuStar Logistics 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NuStar Logistics 6 and NYSE Composite 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 NYSE Composite are associated (or correlated) with NuStar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NuStar Logistics 6 has no effect on the direction of NYSE Composite i.e., NYSE Composite and NuStar go up and down completely randomly.
Pair Corralation between NYSE Composite and NuStar
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.14 times more return on investment than NuStar. However, NYSE Composite is 1.14 times more volatile than NuStar Logistics 6. It trades about 0.14 of its potential returns per unit of risk. NuStar Logistics 6 is currently generating about -0.01 per unit of risk. If you would invest 1,613,685 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 413,519 from holding NYSE Composite or generate 25.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
NYSE Composite vs. NuStar Logistics 6
Performance |
| Timeline |
NYSE Composite and NuStar Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
NuStar Logistics 6
Pair trading matchups for NuStar
Pair Trading with NYSE Composite and NuStar
The main advantage of trading using opposite NYSE Composite and NuStar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, NuStar 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 NuStar will offset losses from the drop in NuStar's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| NuStar vs. United Airlines Holdings | NuStar vs. Oatly Group AB | NuStar vs. TFI International | NuStar vs. Sun Country Airlines |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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