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
Suncor Energy Inc. vs Exxon Mobil Corp.
Allowing for the 30-days total investment horizon, Suncor Energy Inc is expected to generate 2.29 times more return on investment than Exxon. However, Suncor Energy is 2.29 times more volatile than Exxon Mobil Corporation. It trades about 0.04 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 3,136 in Suncor Energy Inc on April 29, 2017 and sell it today you would earn a total of 27.00 from holding Suncor Energy Inc or generate 0.86% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak 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.
Compared to the overall equity markets, risk-adjusted returns on investments in Suncor Energy Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days Exxon Mobil Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.