Correlation Between Ecolab and 36158FAD2
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By analyzing existing cross correlation between Ecolab Inc and GE GLOBAL INS, you can compare the effects of market volatilities on Ecolab and 36158FAD2 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 36158FAD2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecolab and 36158FAD2.
Diversification Opportunities for Ecolab and 36158FAD2
Very good diversification
The 3 months correlation between Ecolab and 36158FAD2 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ecolab Inc and GE GLOBAL INS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE GLOBAL INS 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 36158FAD2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE GLOBAL INS has no effect on the direction of Ecolab i.e., Ecolab and 36158FAD2 go up and down completely randomly.
Pair Corralation between Ecolab and 36158FAD2
Considering the 90-day investment horizon Ecolab Inc is expected to generate 0.45 times more return on investment than 36158FAD2. However, Ecolab Inc is 2.24 times less risky than 36158FAD2. It trades about 0.1 of its potential returns per unit of risk. GE GLOBAL INS is currently generating about -0.07 per unit of risk. If you would invest 24,450 in Ecolab Inc on September 5, 2024 and sell it today you would earn a total of 367.00 from holding Ecolab Inc or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 22.73% |
| Values | Daily Returns |
Ecolab Inc vs. GE GLOBAL INS
Performance |
| Timeline |
| Ecolab Inc |
| GE GLOBAL INS |
Ecolab and 36158FAD2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecolab and 36158FAD2
The main advantage of trading using opposite Ecolab and 36158FAD2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecolab position performs unexpectedly, 36158FAD2 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 36158FAD2 will offset losses from the drop in 36158FAD2's long position.| Ecolab vs. Linde plc Ordinary | Ecolab vs. PPG Industries | Ecolab vs. Sherwin Williams Co | Ecolab vs. LyondellBasell Industries NV |
| 36158FAD2 vs. Sealed Air | 36158FAD2 vs. Sensient Technologies | 36158FAD2 vs. Stepan Company | 36158FAD2 vs. Ecolab Inc |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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