Correlation Between Entegris and Globalfoundries
Can any of the company-specific risk be diversified away by investing in both Entegris and Globalfoundries 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 Globalfoundries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and Globalfoundries, you can compare the effects of market volatilities on Entegris and Globalfoundries 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 Globalfoundries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Globalfoundries.
Diversification Opportunities for Entegris and Globalfoundries
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Entegris and Globalfoundries is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Globalfoundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globalfoundries 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 Globalfoundries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globalfoundries has no effect on the direction of Entegris i.e., Entegris and Globalfoundries go up and down completely randomly.
Pair Corralation between Entegris and Globalfoundries
Given the investment horizon of 90 days Entegris is expected to generate 4.23 times less return on investment than Globalfoundries. But when comparing it to its historical volatility, Entegris is 1.91 times less risky than Globalfoundries. It trades about 0.05 of its potential returns per unit of risk. Globalfoundries is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,837 in Globalfoundries on August 24, 2024 and sell it today you would earn a total of 363.00 from holding Globalfoundries or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entegris vs. Globalfoundries
Performance |
| Timeline |
| Entegris |
| Globalfoundries |
Entegris and Globalfoundries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and Globalfoundries
The main advantage of trading using opposite Entegris and Globalfoundries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris position performs unexpectedly, Globalfoundries 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 Globalfoundries will offset losses from the drop in Globalfoundries' long position.| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
| Globalfoundries vs. Eshallgo Class A | Globalfoundries vs. Amtech Systems | Globalfoundries vs. Gold Fields Ltd | Globalfoundries vs. Aegean Airlines SA |
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.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |