Correlation Between Ecolab and 37940XAH5
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By analyzing existing cross correlation between Ecolab Inc and GPN 29 15 NOV 31, you can compare the effects of market volatilities on Ecolab and 37940XAH5 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 37940XAH5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecolab and 37940XAH5.
Diversification Opportunities for Ecolab and 37940XAH5
Poor diversification
The 3 months correlation between Ecolab and 37940XAH5 is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ecolab Inc and GPN 29 15 NOV 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GPN 29 15 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 37940XAH5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GPN 29 15 has no effect on the direction of Ecolab i.e., Ecolab and 37940XAH5 go up and down completely randomly.
Pair Corralation between Ecolab and 37940XAH5
Considering the 90-day investment horizon Ecolab Inc is expected to generate 0.77 times more return on investment than 37940XAH5. However, Ecolab Inc is 1.3 times less risky than 37940XAH5. It trades about -0.34 of its potential returns per unit of risk. GPN 29 15 NOV 31 is currently generating about -0.34 per unit of risk. If you would invest 24,968 in Ecolab Inc on October 7, 2024 and sell it today you would lose (1,775) from holding Ecolab Inc or give up 7.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.0% |
| Values | Daily Returns |
Ecolab Inc vs. GPN 29 15 NOV 31
Performance |
| Timeline |
| Ecolab Inc |
| GPN 29 15 |
Ecolab and 37940XAH5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecolab and 37940XAH5
The main advantage of trading using opposite Ecolab and 37940XAH5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecolab position performs unexpectedly, 37940XAH5 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 37940XAH5 will offset losses from the drop in 37940XAH5's long position.| Ecolab vs. Linde plc Ordinary | Ecolab vs. PPG Industries | Ecolab vs. Sherwin Williams Co | Ecolab vs. LyondellBasell Industries NV |
| 37940XAH5 vs. AEP TEX INC | 37940XAH5 vs. US BANK NATIONAL | 37940XAH5 vs. Moelis Co | 37940XAH5 vs. Pure Storage |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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