Correlation Between CGI and Entegris

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

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

Diversification Opportunities for CGI and Entegris

-0.7

Correlation Coefficient

CGI  Entegris

Excellent diversification

The 3 months correlation between CGI and Entegris is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding CGI Inc and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris and CGI 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 CGI Inc 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 CGI i.e., CGI and Entegris go up and down completely randomly.

Pair Corralation between CGI and Entegris

Considering the 90-day investment horizon CGI Inc is expected to under-perform the Entegris. But the stock apears to be less risky and, when comparing its historical volatility, CGI Inc is 2.7 times less risky than Entegris. The stock trades about -0.12 of its potential returns per unit of risk. The Entegris is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  7,360  in Entegris on August 4, 2025 and sell it today you would earn a total of  1,797  from holding Entegris or generate 24.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

CGI Inc  vs.  Entegris

CGI Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days CGI Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Entegris

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Entegris are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Entegris reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CGI and Entegris

The main advantage of trading using opposite CGI and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGI 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 CGI Inc 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.