Correlation Between Entegris and Supercom
Can any of the company-specific risk be diversified away by investing in both Entegris and Supercom 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 Supercom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and Supercom, you can compare the effects of market volatilities on Entegris and Supercom 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 Supercom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Supercom.
Diversification Opportunities for Entegris and Supercom
Significant diversification
The 3 months correlation between Entegris and Supercom is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Supercom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercom 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 Supercom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercom has no effect on the direction of Entegris i.e., Entegris and Supercom go up and down completely randomly.
Pair Corralation between Entegris and Supercom
Given the investment horizon of 90 days Entegris is expected to generate 0.3 times more return on investment than Supercom. However, Entegris is 3.37 times less risky than Supercom. It trades about 0.04 of its potential returns per unit of risk. Supercom is currently generating about -0.02 per unit of risk. If you would invest 7,211 in Entegris on September 2, 2024 and sell it today you would earn a total of 3,352 from holding Entegris or generate 46.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entegris vs. Supercom
Performance |
| Timeline |
| Entegris |
| Supercom |
Entegris and Supercom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and Supercom
The main advantage of trading using opposite Entegris and Supercom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris position performs unexpectedly, Supercom 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 Supercom will offset losses from the drop in Supercom's long position.| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
| Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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