Correlation Between Johnson Johnson and Entegris
Can any of the company-specific risk be diversified away by investing in both Johnson Johnson 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 Johnson Johnson and Entegris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Johnson and Entegris, you can compare the effects of market volatilities on Johnson Johnson 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 Johnson Johnson with a short position of Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Johnson and Entegris.
Diversification Opportunities for Johnson Johnson and Entegris
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Johnson and Entegris is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Johnson and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris and Johnson Johnson 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 Johnson Johnson 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 Johnson Johnson i.e., Johnson Johnson and Entegris go up and down completely randomly.
Pair Corralation between Johnson Johnson and Entegris
Considering the 90-day investment horizon Johnson Johnson is expected to generate 0.23 times more return on investment than Entegris. However, Johnson Johnson is 4.28 times less risky than Entegris. It trades about 0.24 of its potential returns per unit of risk. Entegris is currently generating about 0.05 per unit of risk. If you would invest 17,701 in Johnson Johnson on September 7, 2025 and sell it today you would earn a total of 2,492 from holding Johnson Johnson or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Johnson Johnson vs. Entegris
Performance |
| Timeline |
| Johnson Johnson |
| Entegris |
Johnson Johnson and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Johnson and Entegris
The main advantage of trading using opposite Johnson Johnson and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Johnson 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.| Johnson Johnson vs. National Healthcare Logistics | Johnson Johnson vs. Viemed Healthcare | Johnson Johnson vs. Education Management Corp | Johnson Johnson vs. Ares Management LP |
| Entegris vs. Airborne Wireless Network | Entegris vs. NXP Semiconductors NV | Entegris vs. Singapore Airlines | Entegris vs. Sun Country Airlines |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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