NEXT vs. PAA

Last updated Jun 9, 2026

NEXT (NextDecade Corporation) and PAA (Plains All American Pipeline, L.P.) are both stocks. Both are in the Energy sector — NEXT in Oil & Gas E&P, PAA in Oil & Gas Midstream. Over the past 10 years, NEXT returned -1.63%/yr vs 5.94%/yr for PAA. At a 0.26 correlation, their price movements are largely independent.

Performance

NEXT vs. PAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in NextDecade Corporation (NEXT) and Plains All American Pipeline, L.P. (PAA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NEXT achieves a 60.53% return, which is significantly higher than PAA's 32.09% return. Over the past 10 years, NEXT has underperformed PAA with an annualized return of -1.63%, while PAA has yielded a comparatively higher 5.94% annualized return.

NEXT

• 1D: -0.82%
• 1M: 11.90%
• YTD: 60.53%
• 6M: 31.78%
• 1Y: 1.81%
• 3Y*: 11.28%
• 5Y*: 14.12%
• 10Y*: -1.63%

PAA

• 1D: 0.88%
• 1M: 4.97%
• YTD: 32.09%
• 6M: 35.41%
• 1Y: 42.03%
• 3Y*: 29.12%
• 5Y*: 22.64%
• 10Y*: 5.94%

*Multi-year figures are annualized to reflect compound growth (CAGR)

NEXT vs. PAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NEXT NextDecade Corporation	60.53%	-31.65%	61.64%	-3.44%	73.33%	36.36%	-65.96%	13.70%	-35.10%	-17.79%
PAA Plains All American Pipeline, L.P.	32.09%	14.30%	21.38%	39.18%	35.79%	22.24%	-50.79%	-2.28%	2.31%	-31.34%

Correlation

The correlation between NEXT and PAA is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.37
Correlation (10Y) Calculated over the trailing 10-year period	0.28
Correlation (All Time) Calculated using the full available price history since Jun 4, 2015	0.26

The correlation between NEXT and PAA shifts across timeframes, from 0.26 (all time) to 0.37 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap NEXT : $2.24B PAA : $16.10B
EPS NEXT : -$1.35 PAA : $2.19
Total Revenue (TTM) NEXT : $0.00 PAA : $45.25B
Gross Profit (TTM) NEXT : -$15.67M PAA : $1.55B
EBITDA (TTM) NEXT : -$271.66M PAA : $2.54B

Return for Risk

NEXT vs. PAA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

NEXT

NEXT Risk / Return Rank: 43
NEXT Sharpe Ratio Rank: 44
NEXT Sortino Ratio Rank: 43
NEXT Omega Ratio Rank: 43
NEXT Calmar Ratio Rank: 43
NEXT Martin Ratio Rank: 42

PAA

PAA Risk / Return Rank: 87
PAA Sharpe Ratio Rank: 91
PAA Sortino Ratio Rank: 90
PAA Omega Ratio Rank: 87
PAA Calmar Ratio Rank: 83
PAA Martin Ratio Rank: 85

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

NEXT vs. PAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for NextDecade Corporation (NEXT) and Plains All American Pipeline, L.P. (PAA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	NEXT	PAA	Difference
Sharpe ratio: Return per unit of total volatility	0.03	2.29	-2.26
Sortino ratio: Return per unit of downside risk	0.51	3.12	-2.61
Omega ratio: Gain probability vs. loss probability	1.06	1.38	-0.31
Calmar ratio: Return relative to maximum drawdown	0.03	2.91	-2.88
Martin ratio: Return relative to average drawdown	0.04	8.41	-8.37
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NEXT vs. PAA - Sharpe Ratio Comparison

The current NEXT Sharpe Ratio is 0.03, which is lower than the PAA Sharpe Ratio of 2.29. The chart below compares the historical Sharpe Ratios of NEXT and PAA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	NEXT	PAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.03	2.29	-2.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.19	0.85	-0.66
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.02	0.14	-0.16
Sharpe Ratio (All Time) Calculated using the full available price history	-0.02	0.31	-0.32

Drawdowns

NEXT vs. PAA - Drawdown Comparison

The maximum NEXT drawdown since its inception was -88.79%, roughly equal to the maximum PAA drawdown of -91.99%. Use the drawdown chart below to compare losses from any high point for NEXT and PAA.

Drawdown Indicators

	NEXT	PAA	Difference
Max Drawdown Largest peak-to-trough decline	-88.79%	-91.99%	+3.20%
Max Drawdown (1Y) Largest decline over 1 year	-60.00%	-14.53%	-45.47%
Max Drawdown (3Y) Largest decline over 3 years	-60.00%	-22.26%	-37.74%
Max Drawdown (5Y) Largest decline over 5 years	-60.00%	-26.11%	-33.89%
Max Drawdown (10Y) Largest decline over 10 years	-88.79%	-87.92%	-0.87%
Current Drawdown Current decline from peak	-29.50%	-8.58%	-20.92%
Average Drawdown Average peak-to-trough decline	-39.04%	-25.77%	-13.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	40.88%	5.01%	+35.87%

Volatility

NEXT vs. PAA - Volatility Comparison

NextDecade Corporation (NEXT) has a higher volatility of 14.18% compared to Plains All American Pipeline, L.P. (PAA) at 7.29%. This indicates that NEXT's price experiences larger fluctuations and is considered to be riskier than PAA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NEXT	PAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.18%	7.29%	+6.89%
Volatility (6M) Calculated over the trailing 6-month period	46.34%	14.05%	+32.29%
Volatility (1Y) Calculated over the trailing 1-year period	63.74%	18.45%	+45.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	76.46%	26.80%	+49.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	87.06%	41.83%	+45.23%

Dividends

NEXT vs. PAA - Dividend Comparison

NEXT has not paid dividends to shareholders, while PAA's dividend yield for the trailing twelve months is around 7.00%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NEXT NextDecade Corporation	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PAA Plains All American Pipeline, L.P.	7.00%	8.46%	7.44%	7.06%	7.08%	7.71%	10.92%	7.50%	5.99%	9.45%	8.21%	11.93%

Financials

Frequently Asked Questions

Can I hold both NEXT and PAA in my portfolio?

NEXT and PAA have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NEXT or PAA?

NEXT has higher volatility (14.18%) compared to PAA (7.29%). In terms of maximum drawdown, NEXT dropped -88.79% vs PAA's -91.99%.

Which has better risk-adjusted returns?

PAA currently has the higher Sharpe Ratio (2.29 vs 0.03), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.