Correlation Between Intel and ECOLAB
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By analyzing existing cross correlation between Intel and ECOLAB INC 325, you can compare the effects of market volatilities on Intel 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 Intel with a short position of ECOLAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and ECOLAB.
Diversification Opportunities for Intel and ECOLAB
Very good diversification
The 3 months correlation between Intel and ECOLAB is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ECOLAB INC 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECOLAB INC 325 and Intel 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 Intel 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 325 has no effect on the direction of Intel i.e., Intel and ECOLAB go up and down completely randomly.
Pair Corralation between Intel and ECOLAB
Given the investment horizon of 90 days Intel is expected to generate 172.85 times less return on investment than ECOLAB. But when comparing it to its historical volatility, Intel is 17.92 times less risky than ECOLAB. It trades about 0.0 of its potential returns per unit of risk. ECOLAB INC 325 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,460 in ECOLAB INC 325 on September 3, 2024 and sell it today you would earn a total of 98.00 from holding ECOLAB INC 325 or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.59% |
| Values | Daily Returns |
Intel vs. ECOLAB INC 325
Performance |
| Timeline |
| Intel |
| ECOLAB INC 325 |
Intel and ECOLAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and ECOLAB
The main advantage of trading using opposite Intel and ECOLAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| ECOLAB vs. Glacier Bancorp | ECOLAB vs. AmTrust Financial Services | ECOLAB vs. Fomento Economico Mexicano | ECOLAB vs. Suntory Beverage Food |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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