Correlation Between Leef Brands and Entegris
Can any of the company-specific risk be diversified away by investing in both Leef Brands and Entegris 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 Leef Brands and Entegris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leef Brands and Entegris, you can compare the effects of market volatilities on Leef Brands and Entegris 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 Leef Brands with a short position of Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leef Brands and Entegris.
Diversification Opportunities for Leef Brands and Entegris
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Leef and Entegris is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Leef Brands and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris and Leef Brands 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 Leef Brands are associated (or correlated) with Entegris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entegris has no effect on the direction of Leef Brands i.e., Leef Brands and Entegris go up and down completely randomly.
Pair Corralation between Leef Brands and Entegris
Assuming the 90 days horizon Leef Brands is expected to generate 3.78 times more return on investment than Entegris. However, Leef Brands is 3.78 times more volatile than Entegris. It trades about 0.15 of its potential returns per unit of risk. Entegris is currently generating about 0.11 per unit of risk. If you would invest 13.00 in Leef Brands on September 15, 2024 and sell it today you would earn a total of 3.00 from holding Leef Brands or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leef Brands vs. Entegris
Performance |
| Timeline |
| Leef Brands |
| Entegris |
Leef Brands and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leef Brands and Entegris
The main advantage of trading using opposite Leef Brands and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leef Brands position performs unexpectedly, Entegris 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 Entegris will offset losses from the drop in Entegris' long position.| Leef Brands vs. Entegris | Leef Brands vs. Valens | Leef Brands vs. Teradyne | Leef Brands vs. Haverty Furniture Companies |
| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |