Correlation Between Ecolab and Newmont Goldcorp
Can any of the company-specific risk be diversified away by investing in both Ecolab and Newmont Goldcorp 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 Newmont Goldcorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecolab Inc and Newmont Goldcorp Corp, you can compare the effects of market volatilities on Ecolab and Newmont Goldcorp 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 Newmont Goldcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecolab and Newmont Goldcorp.
Diversification Opportunities for Ecolab and Newmont Goldcorp
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ecolab and Newmont is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ecolab Inc and Newmont Goldcorp Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont Goldcorp Corp 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 Newmont Goldcorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmont Goldcorp Corp has no effect on the direction of Ecolab i.e., Ecolab and Newmont Goldcorp go up and down completely randomly.
Pair Corralation between Ecolab and Newmont Goldcorp
Considering the 90-day investment horizon Ecolab Inc is expected to under-perform the Newmont Goldcorp. But the stock apears to be less risky and, when comparing its historical volatility, Ecolab Inc is 2.23 times less risky than Newmont Goldcorp. The stock trades about -0.07 of its potential returns per unit of risk. The Newmont Goldcorp Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 6,877 in Newmont Goldcorp Corp on August 16, 2025 and sell it today you would earn a total of 2,095 from holding Newmont Goldcorp Corp or generate 30.46% 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. Newmont Goldcorp Corp
Performance |
| Timeline |
| Ecolab Inc |
| Newmont Goldcorp Corp |
Ecolab and Newmont Goldcorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecolab and Newmont Goldcorp
The main advantage of trading using opposite Ecolab and Newmont Goldcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecolab position performs unexpectedly, Newmont Goldcorp 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 Newmont Goldcorp will offset losses from the drop in Newmont Goldcorp's long position.| Ecolab vs. Sherwin Williams Co | Ecolab vs. Air Products and | Ecolab vs. BHP Group Limited | Ecolab vs. CRH PLC ADR |
| Newmont Goldcorp vs. Agnico Eagle Mines | Newmont Goldcorp vs. Sherwin Williams Co | Newmont Goldcorp vs. Barrick Mining | Newmont Goldcorp vs. Gold Fields Ltd |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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