Correlation Between FormFactor and NSANY

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

By analyzing existing cross correlation between FormFactor and NSANY 3522 17 SEP 25, you can compare the effects of market volatilities on FormFactor and NSANY 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 FormFactor with a short position of NSANY. Check out your portfolio center. Please also check ongoing floating volatility patterns of FormFactor and NSANY.

Diversification Opportunities for FormFactor and NSANY

-0.08

Correlation Coefficient

FormFactor  NSANY

Good diversification

The 3 months correlation between FormFactor and NSANY is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding FormFactor and NSANY 3522 17 SEP 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSANY 3522 17 and FormFactor 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 FormFactor are associated (or correlated) with NSANY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSANY 3522 17 has no effect on the direction of FormFactor i.e., FormFactor and NSANY go up and down completely randomly.

Pair Corralation between FormFactor and NSANY

Given the investment horizon of 90 days FormFactor is expected to generate 1.17 times more return on investment than NSANY. However, FormFactor is 1.17 times more volatile than NSANY 3522 17 SEP 25. It trades about 0.18 of its potential returns per unit of risk. NSANY 3522 17 SEP 25 is currently generating about -0.14 per unit of risk. If you would invest  4,289  in FormFactor on October 10, 2024 and sell it today you would earn a total of  435.00  from holding FormFactor or generate 10.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	60.0%
Values	Daily Returns

FormFactor  vs.  NSANY 3522 17 SEP 25

FormFactor

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FormFactor are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, FormFactor is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

NSANY 3522 17

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NSANY 3522 17 SEP 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NSANY is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with FormFactor and NSANY

The main advantage of trading using opposite FormFactor and NSANY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FormFactor position performs unexpectedly, NSANY 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 NSANY will offset losses from the drop in NSANY's long position.

The idea behind FormFactor and NSANY 3522 17 SEP 25 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.