Correlation Between Hudbay Minerals and Ecolab
Can any of the company-specific risk be diversified away by investing in both Hudbay Minerals 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 Hudbay Minerals and Ecolab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudbay Minerals and Ecolab Inc, you can compare the effects of market volatilities on Hudbay Minerals 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 Hudbay Minerals with a short position of Ecolab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudbay Minerals and Ecolab.
Diversification Opportunities for Hudbay Minerals and Ecolab
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hudbay and Ecolab is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hudbay Minerals and Ecolab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecolab Inc and Hudbay Minerals 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 Hudbay Minerals 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 Hudbay Minerals i.e., Hudbay Minerals and Ecolab go up and down completely randomly.
Pair Corralation between Hudbay Minerals and Ecolab
Considering the 90-day investment horizon Hudbay Minerals is expected to under-perform the Ecolab. In addition to that, Hudbay Minerals is 2.22 times more volatile than Ecolab Inc. It trades about -0.1 of its total potential returns per unit of risk. Ecolab Inc is currently generating about -0.12 per unit of volatility. If you would invest 27,062 in Ecolab Inc on August 17, 2025 and sell it today you would lose (1,204) from holding Ecolab Inc or give up 4.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hudbay Minerals vs. Ecolab Inc
Performance |
| Timeline |
| Hudbay Minerals |
| Ecolab Inc |
Hudbay Minerals and Ecolab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudbay Minerals and Ecolab
The main advantage of trading using opposite Hudbay Minerals and Ecolab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudbay Minerals 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.| Hudbay Minerals vs. Louisiana Pacific | Hudbay Minerals vs. Axalta Coating Systems | Hudbay Minerals vs. New Gold | Hudbay Minerals vs. Element Solutions |
| Ecolab vs. Sherwin Williams Co | Ecolab vs. Air Products and | Ecolab vs. BHP Group Limited | Ecolab vs. CRH PLC ADR |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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