Correlation Between InTest and Entegris

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

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

Diversification Opportunities for InTest and Entegris

0.43

Correlation Coefficient

InTest  Entegris

Very weak diversification

The 3 months correlation between InTest and Entegris is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding inTest and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris and InTest 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 inTest 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 InTest i.e., InTest and Entegris go up and down completely randomly.

Pair Corralation between InTest and Entegris

Given the investment horizon of 90 days inTest is expected to under-perform the Entegris. In addition to that, InTest is 1.23 times more volatile than Entegris. It trades about -0.08 of its total potential returns per unit of risk. Entegris is currently generating about -0.06 per unit of volatility. If you would invest  9,944  in Entegris on December 29, 2024 and sell it today you would lose (1,070) from holding Entegris or give up 10.76% of portfolio value over 90 days.

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

inTest  vs.  Entegris

inTest

Risk-Adjusted Performance

Very Weak

Over the last 90 days inTest has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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.

Pair Trading with InTest and Entegris

The main advantage of trading using opposite InTest and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InTest 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 inTest 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.