Pair Correlation Between Suncor Energy and Hess

This module allows you to analyze existing cross correlation between Suncor Energy Inc and Hess Corporation. You can compare the effects of market volatilities on Suncor Energy and Hess 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 Suncor Energy with a short position of Hess. See also your portfolio center. Please also check ongoing floating volatility patterns of Suncor Energy and Hess.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Suncor Energy Inc.  vs   Hess Corp.
 Performance (%) 
Benchmark  Embed    Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Suncor Energy is expected to generate 2.12 times less return on investment than Hess. But when comparing it to its historical volatility, Suncor Energy Inc is 1.78 times less risky than Hess. It trades about 0.12 of its potential returns per unit of risk. Hess Corporation is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  4,579  in Hess Corporation on March 27, 2017 and sell it today you would earn a total of  285.00  from holding Hess Corporation or generate 6.22% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Suncor Energy and Hess
0.72

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

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

Comparative Volatility

 Predicted Return Density 
Benchmark  Embed    Returns 

Suncor Energy

  
7 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Suncor Energy Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days.

Hess

  
9 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Hess Corporation are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.