Correlation Between Entegris and Global Gas
Can any of the company-specific risk be diversified away by investing in both Entegris and Global Gas 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 Global Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and Global Gas, you can compare the effects of market volatilities on Entegris and Global Gas 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 Global Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Global Gas.
Diversification Opportunities for Entegris and Global Gas
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Entegris and Global is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Global Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Gas 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 Global Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Gas has no effect on the direction of Entegris i.e., Entegris and Global Gas go up and down completely randomly.
Pair Corralation between Entegris and Global Gas
Given the investment horizon of 90 days Entegris is expected to generate 22.06 times less return on investment than Global Gas. But when comparing it to its historical volatility, Entegris is 10.11 times less risky than Global Gas. It trades about 0.05 of its potential returns per unit of risk. Global Gas is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1.16 in Global Gas on September 12, 2024 and sell it today you would lose (0.16) from holding Global Gas or give up 13.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 46.06% |
| Values | Daily Returns |
Entegris vs. Global Gas
Performance |
| Timeline |
| Entegris |
| Global Gas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Entegris and Global Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and Global Gas
The main advantage of trading using opposite Entegris and Global Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris position performs unexpectedly, Global Gas 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 Global Gas will offset losses from the drop in Global Gas' long position.| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
| Global Gas vs. FitLife Brands, Common | Global Gas vs. Axalta Coating Systems | Global Gas vs. Sealed Air | Global Gas vs. Hf Foods 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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