Correlation Between Suncor Energy and Aegon Funding
Can any of the company-specific risk be diversified away by investing in both Suncor Energy and Aegon Funding 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 Suncor Energy and Aegon Funding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suncor Energy and Aegon Funding, you can compare the effects of market volatilities on Suncor Energy and Aegon Funding 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 Suncor Energy with a short position of Aegon Funding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suncor Energy and Aegon Funding.
Diversification Opportunities for Suncor Energy and Aegon Funding
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Suncor and Aegon is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Suncor Energy and Aegon Funding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon Funding and Suncor 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 Suncor Energy are associated (or correlated) with Aegon Funding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon Funding has no effect on the direction of Suncor Energy i.e., Suncor Energy and Aegon Funding go up and down completely randomly.
Pair Corralation between Suncor Energy and Aegon Funding
Allowing for the 90-day total investment horizon Suncor Energy is expected to generate 1.9 times more return on investment than Aegon Funding. However, Suncor Energy is 1.9 times more volatile than Aegon Funding. It trades about 0.06 of its potential returns per unit of risk. Aegon Funding is currently generating about 0.03 per unit of risk. If you would invest 2,862 in Suncor Energy on August 31, 2024 and sell it today you would earn a total of 1,086 from holding Suncor Energy or generate 37.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suncor Energy vs. Aegon Funding
Performance |
| Timeline |
| Suncor Energy |
| Aegon Funding |
Suncor Energy and Aegon Funding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suncor Energy and Aegon Funding
The main advantage of trading using opposite Suncor Energy and Aegon Funding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suncor Energy position performs unexpectedly, Aegon Funding 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 Aegon Funding will offset losses from the drop in Aegon Funding's long position.| Suncor Energy vs. RLJ Lodging Trust | Suncor Energy vs. Aquagold International | Suncor Energy vs. Stepstone Group | Suncor Energy vs. Morningstar Unconstrained Allocation |
| Aegon Funding vs. Petroleo Brasileiro Petrobras | Aegon Funding vs. Equinor ASA ADR | Aegon Funding vs. Eni SpA ADR | Aegon Funding vs. YPF Sociedad Anonima |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |