Correlation Between Supercom and Entegris
Can any of the company-specific risk be diversified away by investing in both Supercom 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 Supercom and Entegris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supercom and Entegris, you can compare the effects of market volatilities on Supercom 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 Supercom with a short position of Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercom and Entegris.
Diversification Opportunities for Supercom and Entegris
Significant diversification
The 3 months correlation between Supercom and Entegris is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Supercom and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris and Supercom 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 Supercom 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 Supercom i.e., Supercom and Entegris go up and down completely randomly.
Pair Corralation between Supercom and Entegris
Given the investment horizon of 90 days Supercom is expected to under-perform the Entegris. In addition to that, Supercom is 3.37 times more volatile than Entegris. It trades about -0.02 of its total potential returns per unit of risk. Entegris is currently generating about 0.04 per unit of volatility. If you would invest 7,211 in Entegris on September 2, 2024 and sell it today you would earn a total of 3,352 from holding Entegris or generate 46.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supercom vs. Entegris
Performance |
| Timeline |
| Supercom |
| Entegris |
Supercom and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercom and Entegris
The main advantage of trading using opposite Supercom and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercom 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.| Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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