Correlation Between Entegris and Boston Omaha
Can any of the company-specific risk be diversified away by investing in both Entegris and Boston Omaha 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 Boston Omaha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and Boston Omaha Corp, you can compare the effects of market volatilities on Entegris and Boston Omaha 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 Boston Omaha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Boston Omaha.
Diversification Opportunities for Entegris and Boston Omaha
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Entegris and Boston is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Boston Omaha Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Omaha Corp 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 Boston Omaha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Omaha Corp has no effect on the direction of Entegris i.e., Entegris and Boston Omaha go up and down completely randomly.
Pair Corralation between Entegris and Boston Omaha
Given the investment horizon of 90 days Entegris is expected to generate 1.38 times more return on investment than Boston Omaha. However, Entegris is 1.38 times more volatile than Boston Omaha Corp. It trades about 0.02 of its potential returns per unit of risk. Boston Omaha Corp is currently generating about -0.04 per unit of risk. If you would invest 8,087 in Entegris on December 12, 2024 and sell it today you would earn a total of 1,298 from holding Entegris or generate 16.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entegris vs. Boston Omaha Corp
Performance |
| Timeline |
| Entegris |
| Boston Omaha Corp |
Entegris and Boston Omaha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and Boston Omaha
The main advantage of trading using opposite Entegris and Boston Omaha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris position performs unexpectedly, Boston Omaha 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 Boston Omaha will offset losses from the drop in Boston Omaha's long position.| Entegris vs. Teradyne | ||
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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