Correlation Between Entegris and 784730AB9

Can any of the company-specific risk be diversified away by investing in both Entegris and 784730AB9 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 784730AB9 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Entegris and US784730AB94, you can compare the effects of market volatilities on Entegris and 784730AB9 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 784730AB9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and 784730AB9.

Diversification Opportunities for Entegris and 784730AB9

-0.33

Correlation Coefficient

Entegris  784730AB9

Very good diversification

The 3 months correlation between Entegris and 784730AB9 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and US784730AB94 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US784730AB94 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 784730AB9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US784730AB94 has no effect on the direction of Entegris i.e., Entegris and 784730AB9 go up and down completely randomly.

Pair Corralation between Entegris and 784730AB9

Given the investment horizon of 90 days Entegris is expected to under-perform the 784730AB9. But the stock apears to be less risky and, when comparing its historical volatility, Entegris is 1.18 times less risky than 784730AB9. The stock trades about -0.07 of its potential returns per unit of risk. The US784730AB94 is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  9,500  in US784730AB94 on October 4, 2024 and sell it today you would earn a total of  1,353  from holding US784730AB94 or generate 14.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	31.75%
Values	Daily Returns

Entegris  vs.  US784730AB94

Entegris

Risk-Adjusted Performance

0 of 100

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.

US784730AB94

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in US784730AB94 are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, 784730AB9 sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Entegris and 784730AB9

The main advantage of trading using opposite Entegris and 784730AB9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris position performs unexpectedly, 784730AB9 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 784730AB9 will offset losses from the drop in 784730AB9's long position.

The idea behind Entegris and US784730AB94 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.