The correlation of SM Energy is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as SM Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SM Energy Co moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in SM Energy Co. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
Very weak diversification
The correlation between SM Energy Co and NYA is 0.59 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SM Energy Co and NYA in the same portfolio, assuming nothing else is changed.
The ability to find closely correlated positions to SM Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SM Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back SM Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling SM Energy Co to buy it.
Moving together with SM Energy Stock
Related Correlations Analysis
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Be your own money managerOur tools can tell you how much better you can do entering a position in SM Energy without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.
Find insiders across different sectors to evaluate their impact on performance
SM Energy Corporate DirectorsSM Energy corporate directors refer to members of a SM Energy board of directors. The board of directors generally takes responsibility for the SM Energy's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of SM Energy's board members must vote for the resolution. The SM Energy board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.
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The danger of trading SM Energy Co is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of SM Energy is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than SM Energy. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile SM Energy is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.When determining whether SM Energy is a strong investment it is important to analyze SM Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact SM Energy's future performance. For an informed investment choice regarding SM Energy Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in SM Energy Co. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in population.You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Complementary Tools for SM Energy Stock analysis
When running SM Energy's price analysis, check to measure SM Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy SM Energy is operating at the current time. Most of SM Energy's value examination focuses on studying past and present price action to predict the probability of SM Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SM Energy's price. Additionally, you may evaluate how the addition of SM Energy to your portfolios can decrease your overall portfolio volatility.
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Is SM Energy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of SM Energy. If investors know SM Energy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about SM Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
Revenue Per Share
Quarterly Revenue Growth
The market value of SM Energy is measured differently than its book value, which is the value of SM Energy that is recorded on the company's balance sheet. Investors also form their own opinion of SM Energy's value that differs from its market value or its book value, called intrinsic value, which is SM Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because SM Energy's market value can be influenced by many factors that don't directly affect SM Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between SM Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if SM Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SM Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.