Correlation Analysis Between Southwestern Energy and Pioneer Natural

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

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 quite persistent forward indicators, Southwestern Energy is not utilizing all of its potentials. The current stock price mess, may contribute to short term losses for the partners.
Pioneer Natural Reso  
99

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Pioneer Natural Resources Compa are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. In spite of rather weak fundamental drivers, Pioneer Natural exhibited solid returns over the last few months and may actually be approaching a breakup point.

Southwestern Energy and Pioneer Natural Volatility Contrast

 Predicted Return Density 
    
  Returns 

Southwestern Energy Company  vs.  Pioneer Natural Resources Comp

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, Southwestern Energy Company is expected to under-perform the Pioneer Natural. In addition to that, Southwestern Energy is 1.89 times more volatile than Pioneer Natural Resources Compa. It trades about -0.01 of its total potential returns per unit of risk. Pioneer Natural Resources Compa is currently generating about 0.14 per unit of volatility. If you would invest  12,539  in Pioneer Natural Resources Compa on December 20, 2019 and sell it today you would earn a total of  2,340  from holding Pioneer Natural Resources Compa or generate 18.66% return on investment over 30 days.

Pair Corralation between Southwestern Energy and Pioneer Natural

0.6
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Southwestern Energy and Pioneer Natural

Southwestern Energy Company diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Southwestern 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 Southwestern 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 Southwestern 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 Southwestern Energy i.e. Southwestern Energy and Pioneer Natural go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.