Correlation Between Ecopetrol and Immutep
Can any of the company-specific risk be diversified away by investing in both Ecopetrol and Immutep 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 Ecopetrol and Immutep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecopetrol SA ADR and Immutep Ltd ADR, you can compare the effects of market volatilities on Ecopetrol and Immutep 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 Immutep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecopetrol and Immutep.
Diversification Opportunities for Ecopetrol and Immutep
Very poor diversification
The 3 months correlation between Ecopetrol and Immutep is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ecopetrol SA ADR and Immutep Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutep Ltd ADR 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 SA ADR are associated (or correlated) with Immutep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutep Ltd ADR has no effect on the direction of Ecopetrol i.e., Ecopetrol and Immutep go up and down completely randomly.
Pair Corralation between Ecopetrol and Immutep
Allowing for the 90-day total investment horizon Ecopetrol is expected to generate 2.78 times less return on investment than Immutep. But when comparing it to its historical volatility, Ecopetrol SA ADR is 2.16 times less risky than Immutep. It trades about 0.11 of its potential returns per unit of risk. Immutep Ltd ADR is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 182.00 in Immutep Ltd ADR on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Immutep Ltd ADR or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ecopetrol SA ADR vs. Immutep Ltd ADR
Performance |
| Timeline |
| Ecopetrol SA ADR |
| Immutep Ltd ADR |
Ecopetrol and Immutep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecopetrol and Immutep
The main advantage of trading using opposite Ecopetrol and Immutep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecopetrol position performs unexpectedly, Immutep 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 Immutep will offset losses from the drop in Immutep's long position.| Ecopetrol vs. Shell PLC ADR | Ecopetrol vs. BP PLC ADR | Ecopetrol vs. Suncor Energy | Ecopetrol vs. Equinor ASA ADR |
| Immutep vs. Ocean Biomedical | Immutep vs. Elevation Oncology | Immutep vs. Zura Bio Limited | Immutep vs. Cns Pharmaceuticals |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |