Correlation Between Suncor Energy and Strainsforpains
Can any of the company-specific risk be diversified away by investing in both Suncor Energy and Strainsforpains 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 Strainsforpains into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suncor Energy and Strainsforpains, you can compare the effects of market volatilities on Suncor Energy and Strainsforpains 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 Strainsforpains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suncor Energy and Strainsforpains.
Diversification Opportunities for Suncor Energy and Strainsforpains
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suncor and Strainsforpains is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Suncor Energy and Strainsforpains in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strainsforpains 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 Strainsforpains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strainsforpains has no effect on the direction of Suncor Energy i.e., Suncor Energy and Strainsforpains go up and down completely randomly.
Pair Corralation between Suncor Energy and Strainsforpains
Allowing for the 90-day total investment horizon Suncor Energy is expected to generate 1.57 times more return on investment than Strainsforpains. However, Suncor Energy is 1.57 times more volatile than Strainsforpains. It trades about 0.08 of its potential returns per unit of risk. Strainsforpains is currently generating about 0.13 per unit of risk. If you would invest 4,161 in Suncor Energy on September 11, 2025 and sell it today you would earn a total of 256.00 from holding Suncor Energy or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Suncor Energy vs. Strainsforpains
Performance |
| Timeline |
| Suncor Energy |
| Strainsforpains |
Suncor Energy and Strainsforpains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suncor Energy and Strainsforpains
The main advantage of trading using opposite Suncor Energy and Strainsforpains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suncor Energy position performs unexpectedly, Strainsforpains 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 Strainsforpains will offset losses from the drop in Strainsforpains' long position.| Suncor Energy vs. Imperial Oil | Suncor Energy vs. Cheniere Energy | Suncor Energy vs. MPLX LP | Suncor Energy vs. Baker Hughes Co |
| Strainsforpains vs. BP PLC ADR | Strainsforpains vs. Shell PLC ADR | Strainsforpains vs. Petroleo Brasileiro Petrobras | Strainsforpains vs. Suncor 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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