Correlation Between Buckeye Partners and NuStar Energy
Can any of the company-specific risk be diversified away by investing in both Buckeye Partners and NuStar Energy 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 Buckeye Partners and NuStar Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Buckeye Partners LP and NuStar Energy LP, you can compare the effects of market volatilities on Buckeye Partners 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 Buckeye Partners with a short position of NuStar Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Buckeye Partners and NuStar Energy.
Diversification Opportunities for Buckeye Partners and NuStar Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Buckeye and NuStar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Buckeye Partners LP and NuStar Energy LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NuStar Energy LP and Buckeye Partners 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 Buckeye Partners LP 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 Buckeye Partners i.e., Buckeye Partners and NuStar Energy go up and down completely randomly.
Pair Corralation between Buckeye Partners and NuStar Energy
If you would invest (100.00) in Buckeye Partners LP on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Buckeye Partners LP or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Buckeye Partners LP vs. NuStar Energy LP
Performance |
| Timeline |
| Buckeye Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NuStar Energy LP |
Buckeye Partners and NuStar Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Buckeye Partners and NuStar Energy
The main advantage of trading using opposite Buckeye Partners and NuStar Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Buckeye Partners position performs unexpectedly, NuStar Energy 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 Energy will offset losses from the drop in NuStar Energy's long position.| Buckeye Partners vs. Quest Resource Holding | Buckeye Partners vs. Saratoga Investment Corp | Buckeye Partners vs. Ainsworth Game Technology | Buckeye Partners vs. NeogamesSA |
| NuStar Energy vs. ONEOK Inc | NuStar Energy vs. Enterprise Products Partners | NuStar Energy vs. Energy Transfer LP | NuStar Energy vs. Kinder Morgan |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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