Ecopetrol Sa Adr Stock Alpha and Beta Analysis

EC Stock  USD 11.33  0.35  3.19%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Ecopetrol SA ADR. It also helps investors analyze the systematic and unsystematic risks associated with investing in Ecopetrol over a specified time horizon. Remember, high Ecopetrol's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Ecopetrol's market risk premium analysis include:
Beta
0.85
Alpha
(0.18)
Risk
1.63
Sharpe Ratio
(0.04)
Expected Return
(0.07)
Please note that although Ecopetrol alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, Ecopetrol did 0.18  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Ecopetrol SA ADR stock's relative risk over its benchmark. Ecopetrol SA ADR has a beta of 0.85  . Ecopetrol returns are very sensitive to returns on the market. As the market goes up or down, Ecopetrol is expected to follow. The current year's Price Book Value Ratio is expected to grow to 25.42. The current year's Enterprise Value Multiple is expected to grow to 56.14.

Ecopetrol Quarterly Cash And Equivalents

5.2 Trillion

Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out Ecopetrol Backtesting, Ecopetrol Valuation, Ecopetrol Correlation, Ecopetrol Hype Analysis, Ecopetrol Volatility, Ecopetrol History and analyze Ecopetrol Performance.

Ecopetrol Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Ecopetrol market risk premium is the additional return an investor will receive from holding Ecopetrol long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Ecopetrol. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Ecopetrol's performance over market.
α-0.18   β0.85

Ecopetrol expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Ecopetrol's Buy-and-hold return. Our buy-and-hold chart shows how Ecopetrol performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Ecopetrol Market Price Analysis

Market price analysis indicators help investors to evaluate how Ecopetrol stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Ecopetrol shares will generate the highest return on investment. By understating and applying Ecopetrol stock market price indicators, traders can identify Ecopetrol position entry and exit signals to maximize returns.

Ecopetrol Return and Market Media

The median price of Ecopetrol for the period between Fri, Dec 29, 2023 and Thu, Mar 28, 2024 is 11.8 with a coefficient of variation of 4.74. The daily time series for the period is distributed with a sample standard deviation of 0.55, arithmetic mean of 11.62, and mean deviation of 0.45. The Stock received a lot of media exposure during the period.
 Price Growth (%)  
       Timeline  
 
Ecopetrol dividend paid on 29th of December 2023
12/29/2023
1
Understanding the Risks of Investing in Equinor ASA ADR Knox Daily - Knox Daily
01/10/2024
2
EMERGING MARKETS-Latin American stocks climb on energy boost, currencies mixed as focus turns on Fed
01/25/2024
3
Gran Tierra Energy Inc. Q4 2023 Earnings Call Transcript
02/21/2024
4
Ecopetrol S.A. reports on the Protocolization of the Bylaws Amendment Approved by the Extraordinary General Shareholders Meeting
02/28/2024
5
Ecopetrols 2023 Earnings Distribution Proposal
02/29/2024
6
Morgan Stanley cuts Ecopetrol amid rising production costs
03/04/2024
7
GMO Commentary Emerging Debt Energy Transition
03/07/2024
8
2 Companies That Could Help Europe Win Its Energy War With Russia
03/08/2024
9
Ecopetrol announces nomination of candidate to its Board of Directors
03/12/2024
10
Ecopetrol Board Blasts Anti-Oil President Petros Nominees as Unfit
03/13/2024

About Ecopetrol Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Ecopetrol or other stocks. Alpha measures the amount that position in Ecopetrol SA ADR has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2022 2023 2024 (projected)
Dividend Yield0.130.0029350.002788
Price To Sales Ratio0.6515.4216.19

Ecopetrol Upcoming Company Events

As portrayed in its financial statements, the presentation of Ecopetrol's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Ecopetrol's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Ecopetrol's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Ecopetrol. Please utilize our Beneish M Score to check the likelihood of Ecopetrol's management manipulating its earnings.
3rd of April 2024
Upcoming Quarterly Report
View
8th of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
3rd of April 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View

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When determining whether Ecopetrol SA ADR offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ecopetrol's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ecopetrol Sa Adr Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ecopetrol Sa Adr Stock:
Check out Ecopetrol Backtesting, Ecopetrol Valuation, Ecopetrol Correlation, Ecopetrol Hype Analysis, Ecopetrol Volatility, Ecopetrol History and analyze Ecopetrol Performance.
Note that the Ecopetrol SA ADR information on this page should be used as a complementary analysis to other Ecopetrol's statistical models used 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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When running Ecopetrol's price analysis, check to measure Ecopetrol's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ecopetrol is operating at the current time. Most of Ecopetrol's value examination focuses on studying past and present price action to predict the probability of Ecopetrol's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ecopetrol's price. Additionally, you may evaluate how the addition of Ecopetrol to your portfolios can decrease your overall portfolio volatility.
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Ecopetrol technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Ecopetrol technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Ecopetrol trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...