Correlation Between Entegris and Ultra Clean
Can any of the company-specific risk be diversified away by investing in both Entegris and Ultra Clean 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 Ultra Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and Ultra Clean Holdings, you can compare the effects of market volatilities on Entegris and Ultra Clean 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 Ultra Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Ultra Clean.
Diversification Opportunities for Entegris and Ultra Clean
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Entegris and Ultra is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Ultra Clean Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Clean Holdings 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 Ultra Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Clean Holdings has no effect on the direction of Entegris i.e., Entegris and Ultra Clean go up and down completely randomly.
Pair Corralation between Entegris and Ultra Clean
Given the investment horizon of 90 days Entegris is expected to under-perform the Ultra Clean. But the stock apears to be less risky and, when comparing its historical volatility, Entegris is 1.14 times less risky than Ultra Clean. The stock trades about -0.02 of its potential returns per unit of risk. The Ultra Clean Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,433 in Ultra Clean Holdings on November 1, 2024 and sell it today you would earn a total of 178.00 from holding Ultra Clean Holdings or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entegris vs. Ultra Clean Holdings
Performance |
| Timeline |
| Entegris |
| Ultra Clean Holdings |
Entegris and Ultra Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and Ultra Clean
The main advantage of trading using opposite Entegris and Ultra Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris position performs unexpectedly, Ultra Clean 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 Ultra Clean will offset losses from the drop in Ultra Clean's long position.| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
| Ultra Clean vs. Amtech Systems | Ultra Clean vs. Veeco Instruments | Ultra Clean vs. Cohu Inc | Ultra Clean vs. Onto Innovation |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |