Pair Correlation Between Baker Hughes and Cheniere Energy

This module allows you to analyze existing cross correlation between Baker Hughes Incorporated and Cheniere Energy Partners L P. You can compare the effects of market volatilities on Baker Hughes and Cheniere Energy 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 Baker Hughes with a short position of Cheniere Energy. See also your portfolio center. Please also check ongoing floating volatility patterns of Baker Hughes and Cheniere Energy.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Baker Hughes Incorporated  vs   Cheniere Energy Partners L P
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Baker Hughes Incorporated is expected to generate 23445.29 times more return on investment than Cheniere Energy. However, Baker Hughes is 23445.29 times more volatile than Cheniere Energy Partners L P. It trades about 0.43 of its potential returns per unit of risk. Cheniere Energy Partners L P is currently generating about 0.12 per unit of risk. If you would invest  7  in Baker Hughes Incorporated on September 18, 2017 and sell it today you would earn a total of  0.00  from holding Baker Hughes Incorporated or generate 0.0% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Baker Hughes and Cheniere Energy
-0.17

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy52.17%
ValuesDaily Returns

Diversification

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Baker Hughes Incorporated and Cheniere Energy Partners L P in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Cheniere Energy Part and Baker Hughes 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 Baker Hughes Incorporated are associated (or correlated) with Cheniere Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheniere Energy Part has no effect on the direction of Baker Hughes i.e. Baker Hughes and Cheniere Energy go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Baker Hughes Incorporated

  
29 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Baker Hughes Incorporated are ranked lower than 29 (%) of all global equities and portfolios over the last 30 days.

Cheniere Energy Part

  
8 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Cheniere Energy Partners L P are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.