Correlation Between Bodal Chemicals and Ecolab
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By analyzing existing cross correlation between Bodal Chemicals Limited and Ecolab Inc, you can compare the effects of market volatilities on Bodal Chemicals 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 Bodal Chemicals with a short position of Ecolab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bodal Chemicals and Ecolab.
Diversification Opportunities for Bodal Chemicals and Ecolab
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bodal and Ecolab is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bodal Chemicals Limited and Ecolab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecolab Inc and Bodal Chemicals 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 Bodal Chemicals Limited 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 Bodal Chemicals i.e., Bodal Chemicals and Ecolab go up and down completely randomly.
Pair Corralation between Bodal Chemicals and Ecolab
Assuming the 90 days trading horizon Bodal Chemicals Limited is expected to under-perform the Ecolab. In addition to that, Bodal Chemicals is 1.23 times more volatile than Ecolab Inc. It trades about -0.22 of its total potential returns per unit of risk. Ecolab Inc is currently generating about 0.04 per unit of volatility. If you would invest 26,934 in Ecolab Inc on July 26, 2025 and sell it today you would earn a total of 789.00 from holding Ecolab Inc or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Bodal Chemicals Limited vs. Ecolab Inc
Performance |
| Timeline |
| Bodal Chemicals |
| Ecolab Inc |
Bodal Chemicals and Ecolab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bodal Chemicals and Ecolab
The main advantage of trading using opposite Bodal Chemicals and Ecolab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bodal Chemicals 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.| Bodal Chemicals vs. Punjab National Bank | Bodal Chemicals vs. Owais Metal and | Bodal Chemicals vs. Sarthak Metals Limited | Bodal Chemicals vs. Hisar Metal Industries |
| Ecolab vs. Sherwin Williams Co | Ecolab vs. Air Products and | Ecolab vs. CRH PLC ADR | Ecolab vs. BHP Group Limited |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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