Correlation Between Advanced Micro and Entegris
Can any of the company-specific risk be diversified away by investing in both Advanced Micro 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 Advanced Micro and Entegris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Micro Devices and Entegris, you can compare the effects of market volatilities on Advanced Micro 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 Advanced Micro with a short position of Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Entegris.
Diversification Opportunities for Advanced Micro and Entegris
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advanced and Entegris is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris and Advanced Micro 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 Advanced Micro Devices 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 Advanced Micro i.e., Advanced Micro and Entegris go up and down completely randomly.
Pair Corralation between Advanced Micro and Entegris
Considering the 90-day investment horizon Advanced Micro Devices is expected to under-perform the Entegris. In addition to that, Advanced Micro is 1.21 times more volatile than Entegris. It trades about -0.14 of its total potential returns per unit of risk. Entegris is currently generating about 0.05 per unit of volatility. If you would invest 10,315 in Entegris on August 24, 2024 and sell it today you would earn a total of 209.00 from holding Entegris or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Advanced Micro Devices vs. Entegris
Performance |
| Timeline |
| Advanced Micro Devices |
| Entegris |
Advanced Micro and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Entegris
The main advantage of trading using opposite Advanced Micro and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro 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.| Advanced Micro vs. Eshallgo Class A | Advanced Micro vs. Amtech Systems | Advanced Micro vs. Gold Fields Ltd | Advanced Micro vs. Aegean Airlines SA |
| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
Check out your portfolio center.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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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