Correlation Between Here Media and Ecolab
Can any of the company-specific risk be diversified away by investing in both Here Media and Ecolab 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 Here Media and Ecolab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Here Media and Ecolab Inc, you can compare the effects of market volatilities on Here Media and Ecolab 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 Here Media with a short position of Ecolab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Here Media and Ecolab.
Diversification Opportunities for Here Media and Ecolab
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Here and Ecolab is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Here Media and Ecolab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecolab Inc and Here Media 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 Here Media are associated (or correlated) with Ecolab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecolab Inc has no effect on the direction of Here Media i.e., Here Media and Ecolab go up and down completely randomly.
Pair Corralation between Here Media and Ecolab
If you would invest 24,737 in Ecolab Inc on September 3, 2024 and sell it today you would earn a total of 140.00 from holding Ecolab Inc or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Here Media vs. Ecolab Inc
Performance |
| Timeline |
| Here Media |
| Ecolab Inc |
Here Media and Ecolab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Here Media and Ecolab
The main advantage of trading using opposite Here Media and Ecolab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Here Media position performs unexpectedly, Ecolab 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 Ecolab will offset losses from the drop in Ecolab's long position.| Here Media vs. Legible | Here Media vs. Sylvania Platinum Limited | Here Media vs. Thunderbird Entertainment Group | Here Media vs. PAX Global Technology |
| Ecolab vs. Linde plc Ordinary | Ecolab vs. PPG Industries | Ecolab vs. Sherwin Williams Co | Ecolab vs. LyondellBasell Industries NV |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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