Correlation Between Cheniere Energy and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both Cheniere Energy and Barclays 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 Barclays 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 Barclays Capital, you can compare the effects of market volatilities on Cheniere Energy and Barclays 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 Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheniere Energy and Barclays Capital.
Diversification Opportunities for Cheniere Energy and Barclays Capital
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cheniere and Barclays is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cheniere Energy Partners and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital 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 Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of Cheniere Energy i.e., Cheniere Energy and Barclays Capital go up and down completely randomly.
Pair Corralation between Cheniere Energy and Barclays Capital
Considering the 90-day investment horizon Cheniere Energy Partners is expected to generate 1.48 times more return on investment than Barclays Capital. However, Cheniere Energy is 1.48 times more volatile than Barclays Capital. It trades about 0.01 of its potential returns per unit of risk. Barclays Capital is currently generating about -0.03 per unit of risk. If you would invest 4,916 in Cheniere Energy Partners on January 26, 2024 and sell it today you would lose (119.00) from holding Cheniere Energy Partners or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 61.54% |
| Values | Daily Returns |
Cheniere Energy Partners vs. Barclays Capital
Performance |
| Timeline |
| Cheniere Energy Partners |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cheniere Energy and Barclays Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheniere Energy and Barclays Capital
The main advantage of trading using opposite Cheniere Energy and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheniere Energy position performs unexpectedly, Barclays 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 Barclays Capital will offset losses from the drop in Barclays Capital's long position.| Cheniere Energy vs. Plains All American | Cheniere Energy vs. NuStar Energy LP | Cheniere Energy vs. Genesis Energy LP | Cheniere Energy vs. Western Midstream Partners |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |