Correlation Between Entegris and Edgewell Personal
Can any of the company-specific risk be diversified away by investing in both Entegris and Edgewell Personal 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 Edgewell Personal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and Edgewell Personal Care, you can compare the effects of market volatilities on Entegris and Edgewell Personal 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 Edgewell Personal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Edgewell Personal.
Diversification Opportunities for Entegris and Edgewell Personal
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Entegris and Edgewell is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Edgewell Personal Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgewell Personal Care 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 Edgewell Personal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgewell Personal Care has no effect on the direction of Entegris i.e., Entegris and Edgewell Personal go up and down completely randomly.
Pair Corralation between Entegris and Edgewell Personal
Given the investment horizon of 90 days Entegris is expected to generate 11.55 times less return on investment than Edgewell Personal. In addition to that, Entegris is 1.84 times more volatile than Edgewell Personal Care. It trades about 0.01 of its total potential returns per unit of risk. Edgewell Personal Care is currently generating about 0.16 per unit of volatility. If you would invest 3,523 in Edgewell Personal Care on August 29, 2024 and sell it today you would earn a total of 174.00 from holding Edgewell Personal Care or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entegris vs. Edgewell Personal Care
Performance |
| Timeline |
| Entegris |
| Edgewell Personal Care |
Entegris and Edgewell Personal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and Edgewell Personal
The main advantage of trading using opposite Entegris and Edgewell Personal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris position performs unexpectedly, Edgewell Personal 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 Edgewell Personal will offset losses from the drop in Edgewell Personal's long position.| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
| Edgewell Personal vs. Mannatech Incorporated | Edgewell Personal vs. Inter Parfums | Edgewell Personal vs. Nu Skin Enterprises | Edgewell Personal vs. Helen of Troy |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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