Correlation Analysis Between SM Energy and Pioneer Natural

Analyzing existing cross correlation between SM Energy Company and Pioneer Natural Resources Compa. You can compare the effects of market volatilities on SM Energy and Pioneer Natural 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 SM Energy with a short position of Pioneer Natural. See also your portfolio center. Please also check ongoing floating volatility patterns of SM Energy and Pioneer Natural.
Horizon     30 Days    Login   to change
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Comparative Performance

SM Energy  
1010

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in SM Energy Company are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, SM Energy revealed solid returns over the last few months and may actually be approaching a breakup point.
Pioneer Natural Reso  
77

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Pioneer Natural Resources Compa are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. In spite of rather sluggish fundamental drivers, Pioneer Natural exhibited solid returns over the last few months and may actually be approaching a breakup point.

SM Energy and Pioneer Natural Volatility Contrast

 Predicted Return Density 
    
  Returns 

SM Energy Company  vs.  Pioneer Natural Resources Comp

 Performance (%) 
    
  Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, SM Energy Company is expected to generate 1.86 times more return on investment than Pioneer Natural. However, SM Energy is 1.86 times more volatile than Pioneer Natural Resources Compa. It trades about 0.16 of its potential returns per unit of risk. Pioneer Natural Resources Compa is currently generating about 0.11 per unit of risk. If you would invest  798.00  in SM Energy Company on December 22, 2019 and sell it today you would earn a total of  312.00  from holding SM Energy Company or generate 39.1% return on investment over 30 days.

Pair Corralation between SM Energy and Pioneer Natural

0.96
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for SM Energy and Pioneer Natural

SM Energy Company diversification synergy

Almost no diversification

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