Correlation Between Ecolab and CRH PLC
Can any of the company-specific risk be diversified away by investing in both Ecolab and CRH PLC 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 CRH PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecolab Inc and CRH PLC ADR, you can compare the effects of market volatilities on Ecolab and CRH PLC 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 CRH PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecolab and CRH PLC.
Diversification Opportunities for Ecolab and CRH PLC
Good diversification
The 3 months correlation between Ecolab and CRH is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ecolab Inc and CRH PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRH PLC ADR 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 CRH PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRH PLC ADR has no effect on the direction of Ecolab i.e., Ecolab and CRH PLC go up and down completely randomly.
Pair Corralation between Ecolab and CRH PLC
Considering the 90-day investment horizon Ecolab Inc is expected to under-perform the CRH PLC. But the stock apears to be less risky and, when comparing its historical volatility, Ecolab Inc is 1.01 times less risky than CRH PLC. The stock trades about -0.08 of its potential returns per unit of risk. The CRH PLC ADR is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 11,047 in CRH PLC ADR on August 15, 2025 and sell it today you would earn a total of 293.00 from holding CRH PLC ADR or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ecolab Inc vs. CRH PLC ADR
Performance |
| Timeline |
| Ecolab Inc |
| CRH PLC ADR |
Ecolab and CRH PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecolab and CRH PLC
The main advantage of trading using opposite Ecolab and CRH PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecolab position performs unexpectedly, CRH PLC 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 CRH PLC will offset losses from the drop in CRH PLC's long position.| Ecolab vs. Sherwin Williams Co | Ecolab vs. Air Products and | Ecolab vs. BHP Group Limited | Ecolab vs. CRH PLC ADR |
| CRH PLC vs. Agnico Eagle Mines | CRH PLC vs. BHP Group Limited | CRH PLC vs. Sherwin Williams Co | CRH PLC vs. Ecolab Inc |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |