Correlation Between Anadarko Petroleum and SM Energy
Can any of the company-specific risk be diversified away by investing in both Anadarko Petroleum and SM Energy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Anadarko Petroleum and SM Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anadarko Petroleum and SM Energy Co, you can compare the effects of market volatilities on Anadarko Petroleum and SM 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 SM Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anadarko Petroleum and SM Energy.
Diversification Opportunities for Anadarko Petroleum and SM Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Anadarko and SM Energy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Anadarko Petroleum and SM Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SM 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 are associated (or correlated) with SM Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SM Energy has no effect on the direction of Anadarko Petroleum i.e., Anadarko Petroleum and SM Energy go up and down completely randomly.
Pair Corralation between Anadarko Petroleum and SM Energy
If you would invest 5,040 in SM Energy Co on January 31, 2024 and sell it today you would earn a total of 44.00 from holding SM Energy Co or generate 0.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Anadarko Petroleum vs. SM Energy Co
Performance |
Timeline |
Anadarko Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SM Energy |
Anadarko Petroleum and SM Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anadarko Petroleum and SM Energy
The main advantage of trading using opposite Anadarko Petroleum and SM Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anadarko Petroleum position performs unexpectedly, SM Energy can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SM Energy will offset losses from the drop in SM Energy's long position.Anadarko Petroleum vs. Ralph Lauren Corp | Anadarko Petroleum vs. Visteon Corp | Anadarko Petroleum vs. FDG Electric Vehicles | Anadarko Petroleum vs. BorgWarner |
SM Energy vs. Vital Energy | SM Energy vs. Permian Resources | SM Energy vs. Matador Resources | SM Energy vs. Obsidian Energy |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
CEOs Directory Screen CEOs from public companies around the world | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |