Pair Correlation Between Suncor Energy and Exxon

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

Pair Volatility

Allowing for the 30-days total investment horizon, Suncor Energy Inc is expected to generate 2.03 times more return on investment than Exxon. However, Suncor Energy is 2.03 times more volatile than Exxon Mobil Corporation. It trades about 0.25 of its potential returns per unit of risk. Exxon Mobil Corporation is currently generating about -0.06 per unit of risk. If you would invest  2,921  in Suncor Energy Inc on June 27, 2017 and sell it today you would earn a total of  219.00  from holding Suncor Energy Inc or generate 7.5% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Suncor Energy and Exxon
-0.03

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Good diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Suncor Energy Inc

  
16 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Suncor Energy Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.

Exxon Mobil

  
0 

Risk-Adjusted Performance

Over the last 30 days Exxon Mobil Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.