Correlation Between Entegris and Rubicon Technology
Can any of the company-specific risk be diversified away by investing in both Entegris and Rubicon Technology 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 Rubicon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and Rubicon Technology, you can compare the effects of market volatilities on Entegris and Rubicon Technology 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 Rubicon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Rubicon Technology.
Diversification Opportunities for Entegris and Rubicon Technology
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Entegris and Rubicon is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Rubicon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubicon Technology 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 Rubicon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubicon Technology has no effect on the direction of Entegris i.e., Entegris and Rubicon Technology go up and down completely randomly.
Pair Corralation between Entegris and Rubicon Technology
If you would invest 10,471 in Entegris on September 1, 2024 and sell it today you would earn a total of 92.00 from holding Entegris or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Entegris vs. Rubicon Technology
Performance |
| Timeline |
| Entegris |
| Rubicon Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Entegris and Rubicon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and Rubicon Technology
The main advantage of trading using opposite Entegris and Rubicon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris position performs unexpectedly, Rubicon Technology 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 Rubicon Technology will offset losses from the drop in Rubicon Technology's long position.| Entegris vs. NXP Semiconductors NV | Entegris vs. GSI Technology | Entegris vs. MaxLinear | Entegris vs. Texas Instruments Incorporated |
| Rubicon Technology vs. Axcelis Technologies | Rubicon Technology vs. inTest | Rubicon Technology vs. Lam Research Corp | Rubicon Technology vs. Photronics |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |