Correlation Between Onto Innovation and Entegris
Can any of the company-specific risk be diversified away by investing in both Onto Innovation 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 Onto Innovation and Entegris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onto Innovation and Entegris, you can compare the effects of market volatilities on Onto Innovation 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 Onto Innovation with a short position of Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onto Innovation and Entegris.
Diversification Opportunities for Onto Innovation and Entegris
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Onto and Entegris is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Onto Innovation and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris and Onto Innovation 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 Onto Innovation 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 Onto Innovation i.e., Onto Innovation and Entegris go up and down completely randomly.
Pair Corralation between Onto Innovation and Entegris
Given the investment horizon of 90 days Onto Innovation is expected to under-perform the Entegris. In addition to that, Onto Innovation is 1.3 times more volatile than Entegris. It trades about -0.26 of its total potential returns per unit of risk. Entegris is currently generating about 0.05 per unit of volatility. If you would invest 10,585 in Entegris on August 28, 2024 and sell it today you would earn a total of 217.00 from holding Entegris or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Onto Innovation vs. Entegris
Performance |
| Timeline |
| Onto Innovation |
| Entegris |
Onto Innovation and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onto Innovation and Entegris
The main advantage of trading using opposite Onto Innovation and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onto Innovation 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.| Onto Innovation vs. Camtek | Onto Innovation vs. Amtech Systems | Onto Innovation vs. Veeco Instruments | Onto Innovation vs. Ichor Holdings |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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