Pair Correlation Between Ashland Inc and NuStar Energy

  
Investment Horizon     30 Days    Login   to change
This module allows you to analyze existing cross correlation between Ashland Inc and NuStar Energy LP. You can compare the effects of market volatilities on Ashland Inc and NuStar Energy 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 Ashland Inc with a short position of NuStar Energy. Please also check ongoing floating volatility patterns of Ashland Inc and NuStar Energy.
 Ashland Inc.  vs   NuStar Energy L.P.
Daily Returns (%)
ASH   NS   
Benchmark  Embed   Timeline 
Considering 30-days investment horizon, Ashland Inc is expected to generate 0.3 times more return on investment than NuStar Energy. However, Ashland Inc is 3.36 times less risky than NuStar Energy. It trades about -0.16 of its potential returns per unit of risk. NuStar Energy LP is currently generating about -0.07 per unit of risk. If you would invest  9,710  in Ashland Inc on January 15, 2016 and sell it today you would lose (517.00) from holding Ashland Inc or give up 5.32% of portfolio value over 30 days.

Correlation Coefficient

0.53

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns
  

Diversification

Very weak diversification

Overlapping area represents amount of risk that can be diversified away by holding Ashland Inc. and NuStar Energy L.P. in the same portfolio assuming nothing else is changed

Historical Performance Chart

Comparative Volatility

Predicted Return Density  
Benchmark  Embed   Returns 

Ashland Inc

  

Risk-adjusted Performance

Over the last 30 days Ashland Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Pair trading matchups for Ashland Inc

  

NuStar Energy LP

  

Risk-adjusted Performance

Over the last 30 days NuStar Energy LP has generated negative risk-adjusted returns adding no value to investors with long positions.

Pair trading matchups for NuStar Energy