Correlation Between 928881AF8 and Entegris

Can any of the company-specific risk be diversified away by investing in both 928881AF8 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 928881AF8 and Entegris into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VNT 295 01 APR 31 and Entegris, you can compare the effects of market volatilities on 928881AF8 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 928881AF8 with a short position of Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of 928881AF8 and Entegris.

Diversification Opportunities for 928881AF8 and Entegris

0.1

Correlation Coefficient

928881AF8  Entegris

Average diversification

The 3 months correlation between 928881AF8 and Entegris is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding VNT 295 01 APR 31 and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris and 928881AF8 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 VNT 295 01 APR 31 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 928881AF8 i.e., 928881AF8 and Entegris go up and down completely randomly.

Pair Corralation between 928881AF8 and Entegris

Assuming the 90 days trading horizon VNT 295 01 APR 31 is expected to under-perform the Entegris. But the bond apears to be less risky and, when comparing its historical volatility, VNT 295 01 APR 31 is 2.7 times less risky than Entegris. The bond trades about -0.06 of its potential returns per unit of risk. The Entegris is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  10,098  in Entegris on September 5, 2024 and sell it today you would earn a total of  719.00  from holding Entegris or generate 7.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	90.91%
Values	Daily Returns

VNT 295 01 APR 31  vs.  Entegris

VNT 295 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VNT 295 01 APR 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 928881AF8 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 928881AF8 and Entegris

The main advantage of trading using opposite 928881AF8 and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 928881AF8 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 VNT 295 01 APR 31 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 Global Correlations module to find global opportunities by holding instruments from different markets.