Correlation Between YanGuFang International and Entegris

Can any of the company-specific risk be diversified away by investing in both YanGuFang International 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 YanGuFang International and Entegris into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between YanGuFang International Group and Entegris, you can compare the effects of market volatilities on YanGuFang International 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 YanGuFang International with a short position of Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of YanGuFang International and Entegris.

Diversification Opportunities for YanGuFang International and Entegris

0.59

Correlation Coefficient

YanGuFang International  Entegris

Very weak diversification

The 3 months correlation between YanGuFang and Entegris is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding YanGuFang International Group and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris and YanGuFang International 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 YanGuFang International Group 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 YanGuFang International i.e., YanGuFang International and Entegris go up and down completely randomly.

Pair Corralation between YanGuFang International and Entegris

If you would invest  0.18  in YanGuFang International Group on September 16, 2024 and sell it today you would earn a total of  0.00  from holding YanGuFang International Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.54%
Values	Daily Returns

YanGuFang International Group  vs.  Entegris

YanGuFang International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YanGuFang International Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, YanGuFang International is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Entegris

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Entegris has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Entegris is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with YanGuFang International and Entegris

The main advantage of trading using opposite YanGuFang International and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YanGuFang International 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 YanGuFang International Group 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.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.