Correlation Between NH Foods and Entegris
Can any of the company-specific risk be diversified away by investing in both NH Foods 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 NH Foods and Entegris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Foods Ltd and Entegris, you can compare the effects of market volatilities on NH Foods 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 NH Foods with a short position of Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and Entegris.
Diversification Opportunities for NH Foods and Entegris
Pay attention - limited upside
The 3 months correlation between NIPMY and Entegris is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris and NH Foods 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 NH Foods Ltd 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 NH Foods i.e., NH Foods and Entegris go up and down completely randomly.
Pair Corralation between NH Foods and Entegris
If you would invest 9,882 in Entegris on November 10, 2024 and sell it today you would earn a total of 770.00 from holding Entegris or generate 7.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Foods Ltd vs. Entegris
Performance |
| Timeline |
| NH Foods |
| Entegris |
NH Foods and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and Entegris
The main advantage of trading using opposite NH Foods and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods 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.The idea behind NH Foods Ltd and Entegris pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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