Correlation Between Entegris and Ainsworth Game

Can any of the company-specific risk be diversified away by investing in both Entegris and Ainsworth Game 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 Entegris and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Entegris and Ainsworth Game Technology, you can compare the effects of market volatilities on Entegris and Ainsworth Game 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 Entegris with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Ainsworth Game.

Diversification Opportunities for Entegris and Ainsworth Game

-0.2

Correlation Coefficient

Entegris  Ainsworth Game

Good diversification

The 3 months correlation between Entegris and Ainsworth is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Ainsworth Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainsworth Game Technology and Entegris 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 Entegris are associated (or correlated) with Ainsworth Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainsworth Game Technology has no effect on the direction of Entegris i.e., Entegris and Ainsworth Game go up and down completely randomly.

Pair Corralation between Entegris and Ainsworth Game

Given the investment horizon of 90 days Entegris is expected to under-perform the Ainsworth Game. But the stock apears to be less risky and, when comparing its historical volatility, Entegris is 2.11 times less risky than Ainsworth Game. The stock trades about -0.06 of its potential returns per unit of risk. The Ainsworth Game Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  53.00  in Ainsworth Game Technology on December 30, 2024 and sell it today you would lose (1.00) from holding Ainsworth Game Technology or give up 1.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Entegris  vs.  Ainsworth Game Technology

Entegris

Risk-Adjusted Performance

Very Weak

Over the last 90 days Entegris has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Ainsworth Game Technology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ainsworth Game Technology are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Ainsworth Game may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Entegris and Ainsworth Game

The main advantage of trading using opposite Entegris and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris position performs unexpectedly, Ainsworth Game 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 Ainsworth Game will offset losses from the drop in Ainsworth Game's long position.

The idea behind Entegris and Ainsworth Game Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.