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
 Suncor Energy Inc.  vs   Exxon Mobil Corp.
 Performance (%) 
Benchmark  Embed    Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Suncor Energy Inc is expected to generate 1.92 times more return on investment than Exxon. However, Suncor Energy is 1.92 times more volatile than Exxon Mobil Corporation. It trades about 0.05 of its potential returns per unit of risk. Exxon Mobil Corporation is currently generating about 0.05 per unit of risk. If you would invest  3,109  in Suncor Energy Inc on February 28, 2017 and sell it today you would earn a total of  45.46  from holding Suncor Energy Inc or generate 1.46% return on investment over 30 days.
Correlation Coefficient
Pair Corralation between Suncor Energy and Exxon
0.71

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 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 
Benchmark  Embed    Returns 

Suncor Energy

  
3 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Suncor Energy Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.

Exxon Mobil

  
3 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Exxon Mobil Corporation are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.