Correlation Between Cheniere Energy and Callinex Mines
Can any of the company-specific risk be diversified away by investing in both Cheniere Energy and Callinex Mines 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 Cheniere Energy and Callinex Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheniere Energy Partners and Callinex Mines, you can compare the effects of market volatilities on Cheniere Energy and Callinex Mines 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 Cheniere Energy with a short position of Callinex Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheniere Energy and Callinex Mines.
Diversification Opportunities for Cheniere Energy and Callinex Mines
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cheniere and Callinex is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cheniere Energy Partners and Callinex Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Callinex Mines and Cheniere 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 Cheniere Energy Partners are associated (or correlated) with Callinex Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Callinex Mines has no effect on the direction of Cheniere Energy i.e., Cheniere Energy and Callinex Mines go up and down completely randomly.
Pair Corralation between Cheniere Energy and Callinex Mines
Considering the 90-day investment horizon Cheniere Energy Partners is expected to generate 0.63 times more return on investment than Callinex Mines. However, Cheniere Energy Partners is 1.58 times less risky than Callinex Mines. It trades about 0.48 of its potential returns per unit of risk. Callinex Mines is currently generating about -0.19 per unit of risk. If you would invest 4,788 in Cheniere Energy Partners on August 29, 2024 and sell it today you would earn a total of 779.00 from holding Cheniere Energy Partners or generate 16.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cheniere Energy Partners vs. Callinex Mines
Performance |
| Timeline |
| Cheniere Energy Partners |
| Callinex Mines |
Cheniere Energy and Callinex Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheniere Energy and Callinex Mines
The main advantage of trading using opposite Cheniere Energy and Callinex Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheniere Energy position performs unexpectedly, Callinex Mines 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 Callinex Mines will offset losses from the drop in Callinex Mines' long position.| Cheniere Energy vs. Antero Midstream Partners | Cheniere Energy vs. Excelerate Energy | Cheniere Energy vs. Energy Transfer LP | Cheniere Energy vs. Teekay |
| Callinex Mines vs. West Mining Corp | Callinex Mines vs. Flying Nickel Mining | Callinex Mines vs. Forum Energy Metals | Callinex Mines vs. Jourdan Resources |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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