Correlation Between Ecolab and CI Financial
Can any of the company-specific risk be diversified away by investing in both Ecolab and CI Financial 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 Ecolab and CI Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecolab Inc and CI Financial Corp, you can compare the effects of market volatilities on Ecolab and CI Financial 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 Ecolab with a short position of CI Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecolab and CI Financial.
Diversification Opportunities for Ecolab and CI Financial
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ecolab and CIXXF is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ecolab Inc and CI Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Financial Corp and Ecolab 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 Ecolab Inc are associated (or correlated) with CI Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Financial Corp has no effect on the direction of Ecolab i.e., Ecolab and CI Financial go up and down completely randomly.
Pair Corralation between Ecolab and CI Financial
If you would invest 17,419 in Ecolab Inc on August 31, 2024 and sell it today you would earn a total of 7,458 from holding Ecolab Inc or generate 42.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.27% |
| Values | Daily Returns |
Ecolab Inc vs. CI Financial Corp
Performance |
| Timeline |
| Ecolab Inc |
| CI Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ecolab and CI Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecolab and CI Financial
The main advantage of trading using opposite Ecolab and CI Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecolab position performs unexpectedly, CI Financial 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 CI Financial will offset losses from the drop in CI Financial's long position.| Ecolab vs. Linde plc Ordinary | Ecolab vs. PPG Industries | Ecolab vs. Sherwin Williams Co | Ecolab vs. LyondellBasell Industries NV |
| CI Financial vs. Ecolab Inc | CI Financial vs. CF Industries Holdings | CI Financial vs. Air Products and | CI Financial vs. Cebu Air ADR |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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