Correlation Between Global Partners and NESNVX
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By analyzing existing cross correlation between Global Partners LP and NESNVX 47 15 JAN 53, you can compare the effects of market volatilities on Global Partners and NESNVX 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 Global Partners with a short position of NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Partners and NESNVX.
Diversification Opportunities for Global Partners and NESNVX
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and NESNVX is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Global Partners LP and NESNVX 47 15 JAN 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 47 15 and Global 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 Global Partners LP are associated (or correlated) with NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 47 15 has no effect on the direction of Global Partners i.e., Global Partners and NESNVX go up and down completely randomly.
Pair Corralation between Global Partners and NESNVX
Assuming the 90 days trading horizon Global Partners is expected to generate 3.96 times less return on investment than NESNVX. But when comparing it to its historical volatility, Global Partners LP is 7.57 times less risky than NESNVX. It trades about 0.15 of its potential returns per unit of risk. NESNVX 47 15 JAN 53 is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 9,143 in NESNVX 47 15 JAN 53 on September 25, 2024 and sell it today you would earn a total of 1,036 from holding NESNVX 47 15 JAN 53 or generate 11.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 61.11% |
Values | Daily Returns |
Global Partners LP vs. NESNVX 47 15 JAN 53
Performance |
Timeline |
Global Partners LP |
NESNVX 47 15 |
Global Partners and NESNVX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Partners and NESNVX
The main advantage of trading using opposite Global Partners and NESNVX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Partners position performs unexpectedly, NESNVX 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 NESNVX will offset losses from the drop in NESNVX's long position.Global Partners vs. Watsco Inc | Global Partners vs. Fastenal Company | Global Partners vs. SiteOne Landscape Supply | Global Partners vs. Ferguson Plc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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