Correlation Between Cheniere Energy and Xiabuxiabu Catering
Can any of the company-specific risk be diversified away by investing in both Cheniere Energy and Xiabuxiabu Catering 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 Xiabuxiabu Catering 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 Xiabuxiabu Catering Management, you can compare the effects of market volatilities on Cheniere Energy and Xiabuxiabu Catering 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 Xiabuxiabu Catering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheniere Energy and Xiabuxiabu Catering.
Diversification Opportunities for Cheniere Energy and Xiabuxiabu Catering
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cheniere and Xiabuxiabu is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cheniere Energy Partners and Xiabuxiabu Catering Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiabuxiabu Catering 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 Xiabuxiabu Catering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiabuxiabu Catering has no effect on the direction of Cheniere Energy i.e., Cheniere Energy and Xiabuxiabu Catering go up and down completely randomly.
Pair Corralation between Cheniere Energy and Xiabuxiabu Catering
Considering the 90-day investment horizon Cheniere Energy Partners is expected to generate 0.56 times more return on investment than Xiabuxiabu Catering. However, Cheniere Energy Partners is 1.78 times less risky than Xiabuxiabu Catering. It trades about 0.48 of its potential returns per unit of risk. Xiabuxiabu Catering Management is currently generating about -0.23 per unit of risk. If you would invest 5,326 in Cheniere Energy Partners on October 23, 2024 and sell it today you would earn a total of 953.00 from holding Cheniere Energy Partners or generate 17.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheniere Energy Partners vs. Xiabuxiabu Catering Management
Performance |
| Timeline |
| Cheniere Energy Partners |
| Xiabuxiabu Catering |
Cheniere Energy and Xiabuxiabu Catering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheniere Energy and Xiabuxiabu Catering
The main advantage of trading using opposite Cheniere Energy and Xiabuxiabu Catering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheniere Energy position performs unexpectedly, Xiabuxiabu Catering 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 Xiabuxiabu Catering will offset losses from the drop in Xiabuxiabu Catering's long position.| Cheniere Energy vs. Plains All American | Cheniere Energy vs. Genesis Energy LP | Cheniere Energy vs. Western Midstream Partners | Cheniere Energy vs. Hess Midstream Partners |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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