Correlation Between Entegris and Champion Gaming
Can any of the company-specific risk be diversified away by investing in both Entegris and Champion Gaming 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 Champion Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and Champion Gaming Group, you can compare the effects of market volatilities on Entegris and Champion Gaming 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 Champion Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Champion Gaming.
Diversification Opportunities for Entegris and Champion Gaming
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Entegris and Champion is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Champion Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Gaming Group 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 Champion Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Gaming Group has no effect on the direction of Entegris i.e., Entegris and Champion Gaming go up and down completely randomly.
Pair Corralation between Entegris and Champion Gaming
Given the investment horizon of 90 days Entegris is expected to generate 0.1 times more return on investment than Champion Gaming. However, Entegris is 10.42 times less risky than Champion Gaming. It trades about -0.06 of its potential returns per unit of risk. Champion Gaming Group is currently generating about -0.23 per unit of risk. If you would invest 10,240 in Entegris on November 6, 2024 and sell it today you would lose (294.00) from holding Entegris or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entegris vs. Champion Gaming Group
Performance |
| Timeline |
| Entegris |
| Champion Gaming Group |
Entegris and Champion Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and Champion Gaming
The main advantage of trading using opposite Entegris and Champion Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris position performs unexpectedly, Champion Gaming 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 Champion Gaming will offset losses from the drop in Champion Gaming's long position.| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
| Champion Gaming vs. Capcom Co Ltd | Champion Gaming vs. CD Projekt SA | Champion Gaming vs. Sega Sammy Holdings | Champion Gaming vs. Playtika Holding Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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