Correlation Between APA and Cheniere Energy
Can any of the company-specific risk be diversified away by investing in both APA and Cheniere Energy 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 APA and Cheniere Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APA Corporation and Cheniere Energy Partners, you can compare the effects of market volatilities on APA 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 APA with a short position of Cheniere Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of APA and Cheniere Energy.
Diversification Opportunities for APA and Cheniere Energy
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between APA and Cheniere is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding APA Corp. and Cheniere Energy Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheniere Energy Partners and APA 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 APA Corporation 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 Partners has no effect on the direction of APA i.e., APA and Cheniere Energy go up and down completely randomly.
Pair Corralation between APA and Cheniere Energy
Considering the 90-day investment horizon APA Corporation is expected to generate 2.02 times more return on investment than Cheniere Energy. However, APA is 2.02 times more volatile than Cheniere Energy Partners. It trades about 0.04 of its potential returns per unit of risk. Cheniere Energy Partners is currently generating about 0.01 per unit of risk. If you would invest 2,358 in APA Corporation on August 31, 2025 and sell it today you would earn a total of 109.00 from holding APA Corporation or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APA Corp. vs. Cheniere Energy Partners
Performance |
| Timeline |
| APA Corporation |
| Cheniere Energy Partners |
APA and Cheniere Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APA and Cheniere Energy
The main advantage of trading using opposite APA and Cheniere Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APA position performs unexpectedly, Cheniere Energy 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 Cheniere Energy will offset losses from the drop in Cheniere Energy's long position.| APA vs. Quaker Chemical | APA vs. Mitsubishi Chemical Holdings | APA vs. DATA Communications Management | APA vs. Mitsui Chemicals ADR |
| Cheniere Energy vs. X FAB Silicon Foundries | Cheniere Energy vs. Nicola Mining | Cheniere Energy vs. Cabo Drilling Corp | Cheniere Energy vs. United Industrial |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |