Correlation Between Calumet Specialty and Nextdecade Corp

Can any of the company-specific risk be diversified away by investing in both Calumet Specialty and Nextdecade Corp 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 Calumet Specialty and Nextdecade Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calumet Specialty Products and Nextdecade Corp, you can compare the effects of market volatilities on Calumet Specialty and Nextdecade Corp 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 Calumet Specialty with a short position of Nextdecade Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calumet Specialty and Nextdecade Corp.

Diversification Opportunities for Calumet Specialty and Nextdecade Corp

-0.62

Correlation Coefficient

Calumet Specialty  Nextdecade Corp

Excellent diversification

The 3 months correlation between Calumet and Nextdecade is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Calumet Specialty Products and Nextdecade Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextdecade Corp and Calumet Specialty 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 Calumet Specialty Products are associated (or correlated) with Nextdecade Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextdecade Corp has no effect on the direction of Calumet Specialty i.e., Calumet Specialty and Nextdecade Corp go up and down completely randomly.

Pair Corralation between Calumet Specialty and Nextdecade Corp

Given the investment horizon of 90 days Calumet Specialty Products is expected to generate 0.61 times more return on investment than Nextdecade Corp. However, Calumet Specialty Products is 1.65 times less risky than Nextdecade Corp. It trades about 0.07 of its potential returns per unit of risk. Nextdecade Corp is currently generating about -0.15 per unit of risk. If you would invest  1,823  in Calumet Specialty Products on October 6, 2025 and sell it today you would earn a total of  132.00  from holding Calumet Specialty Products or generate 7.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Calumet Specialty Products  vs.  Nextdecade Corp

Calumet Specialty

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Calumet Specialty Products are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating primary indicators, Calumet Specialty may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Nextdecade Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Nextdecade Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Calumet Specialty and Nextdecade Corp

The main advantage of trading using opposite Calumet Specialty and Nextdecade Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calumet Specialty position performs unexpectedly, Nextdecade Corp 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 Nextdecade Corp will offset losses from the drop in Nextdecade Corp's long position.

The idea behind Calumet Specialty Products and Nextdecade Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.