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 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 with a short position of NuStar Energy. See also your portfolio center
. Please also check ongoing floating volatility patterns of Ashland
and NuStar Energy
Ashland Inc. vs NuStar Energy L.P.
Considering 30-days investment horizon, Ashland Inc is expected to generate 0.95 times more return on investment than NuStar Energy. However, Ashland Inc is 1.05 times less risky than NuStar Energy. It trades about 0.13 of its potential returns per unit of risk. NuStar Energy LP is currently generating about -0.12 per unit of risk. If you would invest 12,066 in Ashland Inc on February 28, 2017 and sell it today you would earn a total of 335.00 from holding Ashland Inc or generate 2.78% return on investment over 30 days.
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Very good diversification
Overlapping area represents the 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. The correlation between historical prices or returns on NuStar Energy LP and Ashland 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 Ashland Inc are associated (or correlated) with NuStar Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NuStar Energy LP has no effect on the direction of Ashland i.e. Ashland and NuStar Energy go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Ashland Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days NuStar Energy LP has generated negative risk-adjusted returns adding no value to investors with long positions.