Correlation Between Ecolab and CIMG
Can any of the company-specific risk be diversified away by investing in both Ecolab and CIMG 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 CIMG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecolab Inc and CIMG Inc, you can compare the effects of market volatilities on Ecolab and CIMG 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 CIMG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecolab and CIMG.
Diversification Opportunities for Ecolab and CIMG
Very good diversification
The 3 months correlation between Ecolab and CIMG is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ecolab Inc and CIMG Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMG Inc 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 CIMG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMG Inc has no effect on the direction of Ecolab i.e., Ecolab and CIMG go up and down completely randomly.
Pair Corralation between Ecolab and CIMG
Considering the 90-day investment horizon Ecolab Inc is expected to generate 0.06 times more return on investment than CIMG. However, Ecolab Inc is 15.56 times less risky than CIMG. It trades about 0.1 of its potential returns per unit of risk. CIMG Inc is currently generating about -0.01 per unit of risk. If you would invest 26,211 in Ecolab Inc on May 28, 2025 and sell it today you would earn a total of 1,711 from holding Ecolab Inc or generate 6.53% 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. CIMG Inc
Performance |
| Timeline |
| Ecolab Inc |
| CIMG Inc |
Ecolab and CIMG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecolab and CIMG
The main advantage of trading using opposite Ecolab and CIMG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecolab position performs unexpectedly, CIMG 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 CIMG will offset losses from the drop in CIMG's long position.| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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