Correlation Between PostRock Energy and Ecolab
Can any of the company-specific risk be diversified away by investing in both PostRock Energy 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 PostRock Energy and Ecolab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PostRock Energy Corp and Ecolab Inc, you can compare the effects of market volatilities on PostRock Energy 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 PostRock Energy with a short position of Ecolab. Check out your portfolio center. Please also check ongoing floating volatility patterns of PostRock Energy and Ecolab.
Diversification Opportunities for PostRock Energy and Ecolab
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PostRock and Ecolab is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PostRock Energy Corp and Ecolab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecolab Inc and PostRock Energy 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 PostRock Energy Corp 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 PostRock Energy i.e., PostRock Energy and Ecolab go up and down completely randomly.
Pair Corralation between PostRock Energy and Ecolab
If you would invest 1.00 in PostRock Energy Corp on September 24, 2024 and sell it today you would earn a total of 0.00 from holding PostRock Energy Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
PostRock Energy Corp vs. Ecolab Inc
Performance |
| Timeline |
| PostRock Energy Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ecolab Inc |
PostRock Energy and Ecolab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PostRock Energy and Ecolab
The main advantage of trading using opposite PostRock Energy and Ecolab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PostRock Energy 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.| PostRock Energy vs. Ecolab Inc | PostRock Energy vs. Nabors Industries | PostRock Energy vs. NL Industries | PostRock Energy vs. Avient Corp |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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