Correlation Between Ultra Clean and Entegris
Can any of the company-specific risk be diversified away by investing in both Ultra Clean 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 Ultra Clean and Entegris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultra Clean Holdings and Entegris, you can compare the effects of market volatilities on Ultra Clean 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 Ultra Clean with a short position of Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Clean and Entegris.
Diversification Opportunities for Ultra Clean and Entegris
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ultra and Entegris is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Clean Holdings and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris and Ultra Clean 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 Ultra Clean Holdings 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 Ultra Clean i.e., Ultra Clean and Entegris go up and down completely randomly.
Pair Corralation between Ultra Clean and Entegris
Given the investment horizon of 90 days Ultra Clean Holdings is expected to generate 1.15 times more return on investment than Entegris. However, Ultra Clean is 1.15 times more volatile than Entegris. It trades about 0.11 of its potential returns per unit of risk. Entegris is currently generating about 0.05 per unit of risk. If you would invest 3,492 in Ultra Clean Holdings on August 24, 2024 and sell it today you would earn a total of 233.00 from holding Ultra Clean Holdings or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultra Clean Holdings vs. Entegris
Performance |
| Timeline |
| Ultra Clean Holdings |
| Entegris |
Ultra Clean and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultra Clean and Entegris
The main advantage of trading using opposite Ultra Clean and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Clean 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.| Ultra Clean vs. Cohu Inc | Ultra Clean vs. Entegris | Ultra Clean vs. Veeco Instruments | Ultra Clean vs. Amtech Systems |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |