Correlation Between NGL Energy and Global Partners
Can any of the company-specific risk be diversified away by investing in both NGL Energy and Global Partners 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 NGL Energy and Global Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NGL Energy Partners and Global Partners LP, you can compare the effects of market volatilities on NGL Energy and Global Partners 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 NGL Energy with a short position of Global Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of NGL Energy and Global Partners.
Diversification Opportunities for NGL Energy and Global Partners
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NGL and Global is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding NGL Energy Partners and Global Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partners LP and NGL Energy 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 NGL Energy Partners are associated (or correlated) with Global Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partners LP has no effect on the direction of NGL Energy i.e., NGL Energy and Global Partners go up and down completely randomly.
Pair Corralation between NGL Energy and Global Partners
Considering the 90-day investment horizon NGL Energy Partners is expected to generate 2.44 times more return on investment than Global Partners. However, NGL Energy is 2.44 times more volatile than Global Partners LP. It trades about 0.22 of its potential returns per unit of risk. Global Partners LP is currently generating about -0.05 per unit of risk. If you would invest 368.00 in NGL Energy Partners on August 16, 2025 and sell it today you would earn a total of 605.00 from holding NGL Energy Partners or generate 164.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NGL Energy Partners vs. Global Partners LP
Performance |
| Timeline |
| NGL Energy Partners |
| Global Partners LP |
NGL Energy and Global Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NGL Energy and Global Partners
The main advantage of trading using opposite NGL Energy and Global Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NGL Energy position performs unexpectedly, Global Partners 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 Global Partners will offset losses from the drop in Global Partners' long position.| NGL Energy vs. Global Partners LP | NGL Energy vs. Teekay | NGL Energy vs. ProFrac Holding Corp | NGL Energy vs. WaterBridge Infrastructure LLC |
| Global Partners vs. FLEX LNG | Global Partners vs. Now Inc | Global Partners vs. Enerflex | Global Partners vs. World Kinect |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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