Correlation Between Entegris and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Entegris and Canlan Ice 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 Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and Canlan Ice Sports, you can compare the effects of market volatilities on Entegris and Canlan Ice 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 Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Canlan Ice.
Diversification Opportunities for Entegris and Canlan Ice
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Entegris and Canlan is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports 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 Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Entegris i.e., Entegris and Canlan Ice go up and down completely randomly.
Pair Corralation between Entegris and Canlan Ice
Given the investment horizon of 90 days Entegris is expected to generate 23.6 times more return on investment than Canlan Ice. However, Entegris is 23.6 times more volatile than Canlan Ice Sports. It trades about 0.01 of its potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.14 per unit of risk. If you would invest 10,653 in Entegris on August 29, 2024 and sell it today you would lose (157.00) from holding Entegris or give up 1.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Entegris vs. Canlan Ice Sports
Performance |
| Timeline |
| Entegris |
| Canlan Ice Sports |
Entegris and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and Canlan Ice
The main advantage of trading using opposite Entegris and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
| Canlan Ice vs. ANTA Sports Products | Canlan Ice vs. ANTA Sports Products | Canlan Ice vs. Carnival Plc ADS |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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