Correlation Between Entegris and ScanSource
Can any of the company-specific risk be diversified away by investing in both Entegris and ScanSource 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 ScanSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and ScanSource, you can compare the effects of market volatilities on Entegris and ScanSource 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 ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and ScanSource.
Diversification Opportunities for Entegris and ScanSource
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Entegris and ScanSource is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource 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 ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of Entegris i.e., Entegris and ScanSource go up and down completely randomly.
Pair Corralation between Entegris and ScanSource
Given the investment horizon of 90 days Entegris is expected to generate 4.15 times less return on investment than ScanSource. In addition to that, Entegris is 1.19 times more volatile than ScanSource. It trades about 0.02 of its total potential returns per unit of risk. ScanSource is currently generating about 0.08 per unit of volatility. If you would invest 3,659 in ScanSource on September 3, 2024 and sell it today you would earn a total of 1,621 from holding ScanSource or generate 44.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entegris vs. ScanSource
Performance |
| Timeline |
| Entegris |
| ScanSource |
Entegris and ScanSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and ScanSource
The main advantage of trading using opposite Entegris and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris position performs unexpectedly, ScanSource 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 ScanSource will offset losses from the drop in ScanSource's long position.| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
| ScanSource vs. Climb Global Solutions | ScanSource vs. Insight Enterprises | ScanSource vs. Synnex | ScanSource vs. PC Connection |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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