Correlation Between Cheniere Energy and STORE Capital
Can any of the company-specific risk be diversified away by investing in both Cheniere Energy and STORE Capital 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 STORE Capital 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 STORE Capital Corp, you can compare the effects of market volatilities on Cheniere Energy and STORE Capital 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 STORE Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheniere Energy and STORE Capital.
Diversification Opportunities for Cheniere Energy and STORE Capital
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cheniere and STORE is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cheniere Energy Partners and STORE Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE Capital Corp 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 STORE Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE Capital Corp has no effect on the direction of Cheniere Energy i.e., Cheniere Energy and STORE Capital go up and down completely randomly.
Pair Corralation between Cheniere Energy and STORE Capital
If you would invest 4,839 in Cheniere Energy Partners on August 30, 2024 and sell it today you would earn a total of 828.00 from holding Cheniere Energy Partners or generate 17.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Cheniere Energy Partners vs. STORE Capital Corp
Performance |
| Timeline |
| Cheniere Energy Partners |
| STORE Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cheniere Energy and STORE Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheniere Energy and STORE Capital
The main advantage of trading using opposite Cheniere Energy and STORE Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheniere Energy position performs unexpectedly, STORE Capital 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 STORE Capital will offset losses from the drop in STORE Capital's long position.| Cheniere Energy vs. Plains All American | Cheniere Energy vs. Genesis Energy LP | Cheniere Energy vs. Hess Midstream Partners | Cheniere Energy vs. Kinder Morgan |
| STORE Capital vs. ScanSource | STORE Capital vs. Jabil Circuit | STORE Capital vs. Sphere Entertainment Co | STORE Capital vs. NETGEAR |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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