Correlation Between Aegon NV and Ecopetrol

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Aegon NV 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 Aegon NV and Ecopetrol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegon NV PRP and Ecopetrol SA ADR, you can compare the effects of market volatilities on Aegon NV 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 Aegon NV with a short position of Ecopetrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Ecopetrol.

Diversification Opportunities for Aegon NV and Ecopetrol

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Aegon and Ecopetrol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV PRP 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 Aegon NV 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 Aegon NV PRP 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 Aegon NV i.e., Aegon NV and Ecopetrol go up and down completely randomly.

Pair Corralation between Aegon NV and Ecopetrol

If you would invest (100.00) in Aegon NV PRP on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Aegon NV PRP or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Aegon NV PRP  vs.  Ecopetrol SA ADR

 Performance 
       Timeline  
Aegon NV PRP 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Aegon NV PRP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Aegon NV is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
Ecopetrol SA ADR 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Ecopetrol SA ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Ecopetrol is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Aegon NV and Ecopetrol Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aegon NV and Ecopetrol

The main advantage of trading using opposite Aegon NV and Ecopetrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV 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.
The idea behind Aegon NV PRP and Ecopetrol SA ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Other Complementary Tools

Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Money Managers
Screen money managers from public funds and ETFs managed around the world
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk