Correlation Between Entegris and Cohen Circle

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

By analyzing existing cross correlation between Entegris and Cohen Circle Acquisition, you can compare the effects of market volatilities on Entegris and Cohen Circle 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 Cohen Circle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Cohen Circle.

Diversification Opportunities for Entegris and Cohen Circle

-0.08

Correlation Coefficient

Entegris  Cohen Circle

Good diversification

The 3 months correlation between Entegris and Cohen is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Cohen Circle Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Circle Acquisition 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 Cohen Circle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Circle Acquisition has no effect on the direction of Entegris i.e., Entegris and Cohen Circle go up and down completely randomly.

Pair Corralation between Entegris and Cohen Circle

Given the investment horizon of 90 days Entegris is expected to generate 43.8 times less return on investment than Cohen Circle. But when comparing it to its historical volatility, Entegris is 4.66 times less risky than Cohen Circle. It trades about 0.03 of its potential returns per unit of risk. Cohen Circle Acquisition is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  44.00  in Cohen Circle Acquisition on December 19, 2024 and sell it today you would earn a total of  141.00  from holding Cohen Circle Acquisition or generate 320.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.67%
Values	Daily Returns

Entegris  vs.  Cohen Circle Acquisition

Entegris

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Entegris are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Entegris is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Cohen Circle Acquisition

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Circle Acquisition are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Cohen Circle showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Entegris and Cohen Circle

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

The idea behind Entegris and Cohen Circle Acquisition 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.