Correlation Analysis Between Ecopetrol and Chevron

Analyzing 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
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Comparative Performance

Ecopetrol S A  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Ecopetrol S A are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days. Despite somewhat unsteady basic indicators, Ecopetrol sustained solid returns over the last few months and may actually be approaching a breakup point.

Risk-Adjusted Performance

Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. 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 generate 1.25 times more return on investment than Chevron. However, Ecopetrol is 1.25 times more volatile than Chevron Corporation. It trades about 0.21 of its potential returns per unit of risk. Chevron Corporation is currently generating about -0.01 per unit of risk. If you would invest  1,688  in Ecopetrol S A on December 20, 2019 and sell it today you would earn a total of  349.00  from holding Ecopetrol S A or generate 20.68% return on investment over 30 days.

Pair Corralation between Ecopetrol and Chevron

Time Period3 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Ecopetrol and Chevron

Ecopetrol S A diversification synergy

Modest 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.
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