Correlation Analysis Between Anadarko Petroleum and Southwestern Energy

This module allows you to analyze existing cross correlation between Anadarko Petroleum Corporation and Southwestern Energy Company. You can compare the effects of market volatilities on Anadarko Petroleum and Southwestern Energy 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 Anadarko Petroleum with a short position of Southwestern Energy. See also your portfolio center. Please also check ongoing floating volatility patterns of Anadarko Petroleum and Southwestern Energy.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Anadarko Petroleum  
1212

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Anadarko Petroleum Corporation are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, Anadarko Petroleum is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short term losses for the investors.
Southwestern Energy  
00

Risk-Adjusted Performance

Over the last 30 days Southwestern Energy Company has generated negative risk-adjusted returns adding no value to investors with long positions. Allthough unfluctuating performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in October 2019. The existing mess may also be a sign of long standing up-swing for the corporation partners.

Anadarko Petroleum and Southwestern Energy Volatility Contrast

 Predicted Return Density 
      Returns 

Anadarko Petroleum Corp.  vs.  Southwestern Energy Company

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Anadarko Petroleum Corporation is expected to generate 0.1 times more return on investment than Southwestern Energy. However, Anadarko Petroleum Corporation is 10.35 times less risky than Southwestern Energy. It trades about 0.19 of its potential returns per unit of risk. Southwestern Energy Company is currently generating about -0.13 per unit of risk. If you would invest  7,011  in Anadarko Petroleum Corporation on August 21, 2019 and sell it today you would earn a total of  266.00  from holding Anadarko Petroleum Corporation or generate 3.79% return on investment over 30 days.

Pair Corralation between Anadarko Petroleum and Southwestern Energy

-0.5
Time Period3 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy64.52%
ValuesDaily Returns

Diversification Opportunities for Anadarko Petroleum and Southwestern Energy

Anadarko Petroleum Corp. diversification synergy

Very good diversification

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