Correlation Between Entegris and East West
Can any of the company-specific risk be diversified away by investing in both Entegris and East West 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 East West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and East West Bancorp, you can compare the effects of market volatilities on Entegris and East West 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 East West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and East West.
Diversification Opportunities for Entegris and East West
Very weak diversification
The 3 months correlation between Entegris and East is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and East West Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East West Bancorp 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 East West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East West Bancorp has no effect on the direction of Entegris i.e., Entegris and East West go up and down completely randomly.
Pair Corralation between Entegris and East West
Given the investment horizon of 90 days Entegris is expected to generate 5.47 times less return on investment than East West. In addition to that, Entegris is 1.41 times more volatile than East West Bancorp. It trades about 0.04 of its total potential returns per unit of risk. East West Bancorp is currently generating about 0.27 per unit of volatility. If you would invest 9,549 in East West Bancorp on November 4, 2024 and sell it today you would earn a total of 748.00 from holding East West Bancorp or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entegris vs. East West Bancorp
Performance |
| Timeline |
| Entegris |
| East West Bancorp |
Entegris and East West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and East West
The main advantage of trading using opposite Entegris and East West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris position performs unexpectedly, East West 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 East West will offset losses from the drop in East West's long position.| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
| East West vs. US Bancorp | East West vs. Truist Financial Corp | East West vs. KeyCorp | East West vs. Citizens Financial Group, |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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