Correlation Between Estrella Immunopharma and Entegris

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

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

Diversification Opportunities for Estrella Immunopharma and Entegris

-0.27

Correlation Coefficient

Estrella Immunopharma  Entegris

Very good diversification

The 3 months correlation between Estrella and Entegris is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Estrella Immunopharma and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris and Estrella Immunopharma 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 Estrella Immunopharma are associated (or correlated) with Entegris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entegris has no effect on the direction of Estrella Immunopharma i.e., Estrella Immunopharma and Entegris go up and down completely randomly.

Pair Corralation between Estrella Immunopharma and Entegris

Assuming the 90 days horizon Estrella Immunopharma is expected to generate 16.09 times more return on investment than Entegris. However, Estrella Immunopharma is 16.09 times more volatile than Entegris. It trades about 0.15 of its potential returns per unit of risk. Entegris is currently generating about -0.03 per unit of risk. If you would invest  8.87  in Estrella Immunopharma on October 9, 2024 and sell it today you would earn a total of  0.24  from holding Estrella Immunopharma or generate 2.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	29.51%
Values	Daily Returns

Estrella Immunopharma  vs.  Entegris

Estrella Immunopharma

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Estrella Immunopharma has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly unfluctuating basic indicators, Estrella Immunopharma showed solid returns over the last few months and may actually be approaching a breakup point.

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 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.

Pair Trading with Estrella Immunopharma and Entegris

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

The idea behind Estrella Immunopharma and Entegris 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 Stocks Directory module to find actively traded stocks across global markets.