Correlation Between Ecolab and Barrick Mining
Can any of the company-specific risk be diversified away by investing in both Ecolab and Barrick Mining 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 Ecolab and Barrick Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecolab Inc and Barrick Mining, you can compare the effects of market volatilities on Ecolab and Barrick Mining 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 Ecolab with a short position of Barrick Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecolab and Barrick Mining.
Diversification Opportunities for Ecolab and Barrick Mining
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ecolab and Barrick is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ecolab Inc and Barrick Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Mining and Ecolab 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 Ecolab Inc are associated (or correlated) with Barrick Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Mining has no effect on the direction of Ecolab i.e., Ecolab and Barrick Mining go up and down completely randomly.
Pair Corralation between Ecolab and Barrick Mining
Considering the 90-day investment horizon Ecolab Inc is expected to under-perform the Barrick Mining. But the stock apears to be less risky and, when comparing its historical volatility, Ecolab Inc is 2.35 times less risky than Barrick Mining. The stock trades about -0.01 of its potential returns per unit of risk. The Barrick Mining is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,613 in Barrick Mining on August 28, 2025 and sell it today you would earn a total of 1,299 from holding Barrick Mining or generate 49.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ecolab Inc vs. Barrick Mining
Performance |
| Timeline |
| Ecolab Inc |
| Barrick Mining |
Ecolab and Barrick Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecolab and Barrick Mining
The main advantage of trading using opposite Ecolab and Barrick Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecolab position performs unexpectedly, Barrick Mining 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 Barrick Mining will offset losses from the drop in Barrick Mining's long position.| Ecolab vs. Zane Interactive Publishing | Ecolab vs. Gamma Communications plc | Ecolab vs. IDP Education Limited | Ecolab vs. Kid Castle Educational |
| Barrick Mining vs. FDG Electric Vehicles | Barrick Mining vs. Asure Software | Barrick Mining vs. IBITX Software | Barrick Mining vs. CARsgen Therapeutics Holdings |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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