Correlation Analysis Between Ecopetrol and Chevron

This module allows you to analyze existing cross correlation between Ecopetrol S A and Chevron Corporation. You can compare the effects of market volatilities on Ecopetrol and Chevron 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 Ecopetrol with a short position of Chevron. See also your portfolio center. Please also check ongoing floating volatility patterns of Ecopetrol and Chevron.
Horizon     30 Days    Login   to change
Check Efficiency

Comparative Performance

Ecopetrol S A  

Risk-Adjusted Performance

Over the last 30 days Ecopetrol S A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Ecopetrol is not utilizing all of its potentials. The ongoing stock price disturbance, may contribute to short term losses for the investors.

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corporation are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. Inspite fairly strong basic indicators, Chevron is not utilizing all of its potentials. The ongoing stock price disturbance, may contribute to short term losses for the investors.

Ecopetrol and Chevron Volatility Contrast

 Predicted Return Density 

Ecopetrol S A  vs.  Chevron Corp.

 Performance (%) 

Pair Volatility

Allowing for the 30-days total investment horizon, Ecopetrol S A is expected to under-perform the Chevron. In addition to that, Ecopetrol is 1.71 times more volatile than Chevron Corporation. It trades about 0.0 of its total potential returns per unit of risk. Chevron Corporation is currently generating about 0.02 per unit of volatility. If you would invest  12,016  in Chevron Corporation on August 16, 2019 and sell it today you would earn a total of  134.00  from holding Chevron Corporation or generate 1.12% return on investment over 30 days.

Pair Corralation between Ecopetrol and Chevron

Time Period3 Months [change]
StrengthVery Strong
ValuesDaily Returns

Diversification Opportunities for Ecopetrol and Chevron

Ecopetrol S A diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Ecopetrol S A and Chevron Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Chevron and Ecopetrol 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 Ecopetrol S A are associated (or correlated) with Chevron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron has no effect on the direction of Ecopetrol i.e. Ecopetrol and Chevron go up and down completely randomly.
See also your portfolio center. Please also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.