Correlation Between AquaBounty Technologies and Ecopetrol
Can any of the company-specific risk be diversified away by investing in both AquaBounty Technologies 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 AquaBounty Technologies and Ecopetrol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AquaBounty Technologies and Ecopetrol SA ADR, you can compare the effects of market volatilities on AquaBounty Technologies 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 AquaBounty Technologies with a short position of Ecopetrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of AquaBounty Technologies and Ecopetrol.
Diversification Opportunities for AquaBounty Technologies and Ecopetrol
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AquaBounty and Ecopetrol is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding AquaBounty Technologies 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 AquaBounty Technologies 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 AquaBounty Technologies 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 AquaBounty Technologies i.e., AquaBounty Technologies and Ecopetrol go up and down completely randomly.
Pair Corralation between AquaBounty Technologies and Ecopetrol
Considering the 90-day investment horizon AquaBounty Technologies is expected to under-perform the Ecopetrol. In addition to that, AquaBounty Technologies is 1.96 times more volatile than Ecopetrol SA ADR. It trades about -0.12 of its total potential returns per unit of risk. Ecopetrol SA ADR is currently generating about 0.02 per unit of volatility. If you would invest 1,153 in Ecopetrol SA ADR on January 26, 2024 and sell it today you would earn a total of 16.00 from holding Ecopetrol SA ADR or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AquaBounty Technologies vs. Ecopetrol SA ADR
Performance |
| Timeline |
| AquaBounty Technologies |
| Ecopetrol SA ADR |
AquaBounty Technologies and Ecopetrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AquaBounty Technologies and Ecopetrol
The main advantage of trading using opposite AquaBounty Technologies and Ecopetrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AquaBounty Technologies 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.| AquaBounty Technologies vs. Atlantic Sapphire ASA | AquaBounty Technologies vs. Adecoagro SA | AquaBounty Technologies vs. Local Bounti Corp | AquaBounty Technologies vs. AgriFORCE Growing Systems |
| Ecopetrol vs. Petroleo Brasileiro Petrobras | Ecopetrol vs. Equinor ASA ADR | Ecopetrol vs. Eni SpA ADR | Ecopetrol vs. Cenovus 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |