Correlation Between Castle Biosciences and Ecolab
Can any of the company-specific risk be diversified away by investing in both Castle Biosciences 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 Castle Biosciences and Ecolab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castle Biosciences and Ecolab Inc, you can compare the effects of market volatilities on Castle Biosciences 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 Castle Biosciences with a short position of Ecolab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castle Biosciences and Ecolab.
Diversification Opportunities for Castle Biosciences and Ecolab
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Castle and Ecolab is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Castle Biosciences and Ecolab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecolab Inc and Castle Biosciences 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 Castle Biosciences 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 Castle Biosciences i.e., Castle Biosciences and Ecolab go up and down completely randomly.
Pair Corralation between Castle Biosciences and Ecolab
Given the investment horizon of 90 days Castle Biosciences is expected to generate 4.74 times more return on investment than Ecolab. However, Castle Biosciences is 4.74 times more volatile than Ecolab Inc. It trades about 0.13 of its potential returns per unit of risk. Ecolab Inc is currently generating about 0.09 per unit of risk. If you would invest 1,597 in Castle Biosciences on May 30, 2025 and sell it today you would earn a total of 631.00 from holding Castle Biosciences or generate 39.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castle Biosciences vs. Ecolab Inc
Performance |
| Timeline |
| Castle Biosciences |
| Ecolab Inc |
Castle Biosciences and Ecolab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castle Biosciences and Ecolab
The main advantage of trading using opposite Castle Biosciences and Ecolab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castle Biosciences 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.| Castle Biosciences vs. Personalis | Castle Biosciences vs. Sera Prognostics | Castle Biosciences vs. CareDx Inc | Castle Biosciences vs. DarioHealth 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |