Correlation Between Kinder Morgan and NuStar Energy
Can any of the company-specific risk be diversified away by investing in both Kinder Morgan 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 Kinder Morgan and NuStar Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinder Morgan Energy and NuStar Energy LP, you can compare the effects of market volatilities on Kinder Morgan 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 Kinder Morgan with a short position of NuStar Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinder Morgan and NuStar Energy.
Diversification Opportunities for Kinder Morgan and NuStar Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinder and NuStar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kinder Morgan Energy 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 Kinder Morgan 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 Kinder Morgan Energy 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 Kinder Morgan i.e., Kinder Morgan and NuStar Energy go up and down completely randomly.
Pair Corralation between Kinder Morgan and NuStar Energy
If you would invest 2,157 in NuStar Energy LP on February 11, 2024 and sell it today you would earn a total of 39.00 from holding NuStar Energy LP or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kinder Morgan Energy vs. NuStar Energy LP
Performance |
| Timeline |
| Kinder Morgan Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NuStar Energy LP |
Kinder Morgan and NuStar Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinder Morgan and NuStar Energy
The main advantage of trading using opposite Kinder Morgan and NuStar Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinder Morgan 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.| Kinder Morgan vs. Biglari Holdings | Kinder Morgan vs. Acumen Pharmaceuticals | Kinder Morgan vs. Abcellera BiologicsInc | Kinder Morgan vs. Molecular Partners AG |
| NuStar Energy vs. MPLX LP | NuStar Energy vs. Western Midstream Partners | NuStar Energy vs. Plains All American | NuStar Energy vs. Genesis Energy LP |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |