Correlation Between Bank of New York and Cheniere Energy
Can any of the company-specific risk be diversified away by investing in both Bank of New York 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 Bank of New York and Cheniere Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Bank of and Cheniere Energy Partners, you can compare the effects of market volatilities on Bank of New York 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 Bank of New York with a short position of Cheniere Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and Cheniere Energy.
Diversification Opportunities for Bank of New York and Cheniere Energy
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Cheniere is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding The Bank of 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 Bank of New York 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 The Bank of 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 Bank of New York i.e., Bank of New York and Cheniere Energy go up and down completely randomly.
Pair Corralation between Bank of New York and Cheniere Energy
Allowing for the 90-day total investment horizon The Bank of is expected to generate 0.67 times more return on investment than Cheniere Energy. However, The Bank of is 1.5 times less risky than Cheniere Energy. It trades about 0.14 of its potential returns per unit of risk. Cheniere Energy Partners is currently generating about 0.02 per unit of risk. If you would invest 10,124 in The Bank of on August 18, 2025 and sell it today you would earn a total of 924.00 from holding The Bank of or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Bank of vs. Cheniere Energy Partners
Performance |
| Timeline |
| Bank of New York |
| Cheniere Energy Partners |
Bank of New York and Cheniere Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York and Cheniere Energy
The main advantage of trading using opposite Bank of New York and Cheniere Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York 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.| Bank of New York vs. Northern Trust | Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York vs. T Rowe Price |
| Cheniere Energy vs. Pembina Pipeline Corp | Cheniere Energy vs. Venture Global, | Cheniere Energy vs. Halliburton | Cheniere Energy vs. Expand Energy |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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