Correlation Between 857477BS1 and Ecolab
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By analyzing existing cross correlation between STT 2203 07 FEB 28 and Ecolab Inc, you can compare the effects of market volatilities on 857477BS1 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 857477BS1 with a short position of Ecolab. Check out your portfolio center. Please also check ongoing floating volatility patterns of 857477BS1 and Ecolab.
Diversification Opportunities for 857477BS1 and Ecolab
Average diversification
The 3 months correlation between 857477BS1 and Ecolab is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding STT 2203 07 FEB 28 and Ecolab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecolab Inc and 857477BS1 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 STT 2203 07 FEB 28 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 857477BS1 i.e., 857477BS1 and Ecolab go up and down completely randomly.
Pair Corralation between 857477BS1 and Ecolab
Assuming the 90 days trading horizon 857477BS1 is expected to generate 19.6 times less return on investment than Ecolab. But when comparing it to its historical volatility, STT 2203 07 FEB 28 is 1.61 times less risky than Ecolab. It trades about 0.01 of its potential returns per unit of risk. Ecolab Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 17,814 in Ecolab Inc on September 12, 2024 and sell it today you would earn a total of 6,738 from holding Ecolab Inc or generate 37.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
STT 2203 07 FEB 28 vs. Ecolab Inc
Performance |
| Timeline |
| STT 2203 07 |
| Ecolab Inc |
857477BS1 and Ecolab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 857477BS1 and Ecolab
The main advantage of trading using opposite 857477BS1 and Ecolab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 857477BS1 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.| 857477BS1 vs. Ecolab Inc | 857477BS1 vs. WPP PLC ADR | 857477BS1 vs. Dolphin Entertainment | 857477BS1 vs. Global E Online |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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