Correlation Between BreadTalk Group and Ecopetrol
Can any of the company-specific risk be diversified away by investing in both BreadTalk Group and Ecopetrol 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 BreadTalk Group and Ecopetrol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BreadTalk Group Limited and Ecopetrol SA ADR, you can compare the effects of market volatilities on BreadTalk Group and Ecopetrol 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 BreadTalk Group with a short position of Ecopetrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of BreadTalk Group and Ecopetrol.
Diversification Opportunities for BreadTalk Group and Ecopetrol
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BreadTalk and Ecopetrol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BreadTalk Group Limited and Ecopetrol SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecopetrol SA ADR and BreadTalk Group 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 BreadTalk Group Limited are associated (or correlated) with Ecopetrol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecopetrol SA ADR has no effect on the direction of BreadTalk Group i.e., BreadTalk Group and Ecopetrol go up and down completely randomly.
Pair Corralation between BreadTalk Group and Ecopetrol
If you would invest 1,035 in Ecopetrol SA ADR on January 24, 2024 and sell it today you would earn a total of 122.00 from holding Ecopetrol SA ADR or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BreadTalk Group Limited vs. Ecopetrol SA ADR
Performance |
| Timeline |
| BreadTalk Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ecopetrol SA ADR |
BreadTalk Group and Ecopetrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BreadTalk Group and Ecopetrol
The main advantage of trading using opposite BreadTalk Group and Ecopetrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BreadTalk Group position performs unexpectedly, Ecopetrol 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 Ecopetrol will offset losses from the drop in Ecopetrol's long position.| BreadTalk Group vs. Global E Online | BreadTalk Group vs. Hanover Foods | BreadTalk Group vs. Tyson Foods | BreadTalk Group vs. National Beverage Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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