Correlation Analysis Between SM Energy and United States

Analyzing existing cross correlation between SM Energy Company and United States Steel Corporation. You can compare the effects of market volatilities on SM Energy and United States 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 United States. See also your portfolio center. Please also check ongoing floating volatility patterns of SM Energy and United States.
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 conflicting technical indicators, SM Energy revealed solid returns over the last few months and may actually be approaching a breakup point.
United States Steel  
00

Risk-Adjusted Performance

Over the last 30 days United States Steel Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

SM Energy and United States Volatility Contrast

 Predicted Return Density 
    
  Returns 

SM Energy Company  vs.  United States Steel Corp.

 Performance (%) 
    
  Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, SM Energy Company is expected to generate 1.1 times more return on investment than United States. However, SM Energy is 1.1 times more volatile than United States Steel Corporation. It trades about 0.16 of its potential returns per unit of risk. United States Steel Corporation is currently generating about -0.04 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 United States

-0.32
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for SM Energy and United States

SM Energy Company diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding SM Energy Company and United States Steel Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of SM Energy i.e. SM Energy and United States go up and down completely randomly.
See also your portfolio center. Please also try Aroon Oscillator module to analyze current equity momentum using aroon oscillator and other momentum ratios.