Correlation Between Entegris and IX Acquisition
Can any of the company-specific risk be diversified away by investing in both Entegris and IX Acquisition 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 IX Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and IX Acquisition Corp, you can compare the effects of market volatilities on Entegris and IX Acquisition 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 IX Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and IX Acquisition.
Diversification Opportunities for Entegris and IX Acquisition
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Entegris and IXAQU is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and IX Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IX Acquisition Corp 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 IX Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IX Acquisition Corp has no effect on the direction of Entegris i.e., Entegris and IX Acquisition go up and down completely randomly.
Pair Corralation between Entegris and IX Acquisition
Given the investment horizon of 90 days Entegris is expected to under-perform the IX Acquisition. In addition to that, Entegris is 1.99 times more volatile than IX Acquisition Corp. It trades about -0.03 of its total potential returns per unit of risk. IX Acquisition Corp is currently generating about 0.1 per unit of volatility. If you would invest 1,004 in IX Acquisition Corp on September 1, 2024 and sell it today you would earn a total of 137.00 from holding IX Acquisition Corp or generate 13.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.98% |
| Values | Daily Returns |
Entegris vs. IX Acquisition Corp
Performance |
| Timeline |
| Entegris |
| IX Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Entegris and IX Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and IX Acquisition
The main advantage of trading using opposite Entegris and IX Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris position performs unexpectedly, IX Acquisition 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 IX Acquisition will offset losses from the drop in IX Acquisition's long position.| Entegris vs. NXP Semiconductors NV | Entegris vs. GSI Technology | Entegris vs. MaxLinear | Entegris vs. Texas Instruments Incorporated |
| IX Acquisition vs. Paysafe | IX Acquisition vs. Cadence Design Systems | IX Acquisition vs. Rumble Inc | IX Acquisition vs. Entegris |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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