Correlation Between Intel Corp and Formfactor

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Intel Corp and Formfactor 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 Intel Corp and Formfactor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel Corp and Formfactor, you can compare the effects of market volatilities on Intel Corp and Formfactor 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 Intel Corp with a short position of Formfactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel Corp and Formfactor.

Diversification Opportunities for Intel Corp and Formfactor

0.86
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Intel and Formfactor is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Intel Corp and Formfactor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Formfactor and Intel Corp 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 Intel Corp are associated (or correlated) with Formfactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Formfactor has no effect on the direction of Intel Corp i.e., Intel Corp and Formfactor go up and down completely randomly.

Pair Corralation between Intel Corp and Formfactor

Given the investment horizon of 90 days Intel Corp is expected to generate 0.63 times more return on investment than Formfactor. However, Intel Corp is 1.6 times less risky than Formfactor. It trades about -0.18 of its potential returns per unit of risk. Formfactor is currently generating about -0.17 per unit of risk. If you would invest  4,014  in Intel Corp on May 21, 2022 and sell it today you would lose (394.00)  from holding Intel Corp or give up 9.82% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Intel Corp  vs.  Formfactor

 Performance (%) 
       Timeline  
Intel Corp 
Intel Performance
0 of 100
Over the last 90 days Intel Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Intel Price Channel

Formfactor 
Formfactor Performance
0 of 100
Over the last 90 days Formfactor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest sluggish performance, the Stock's basic indicators remain steady and the new chaos on Wall Street may also be a sign of medium-term gains for the company stakeholders.

Formfactor Price Channel

Intel Corp and Formfactor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Intel Corp and Formfactor

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

Intel Corp

Pair trading matchups for Intel Corp

The idea behind Intel Corp and Formfactor 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.

Formfactor

Pair trading matchups for Formfactor

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Complementary Tools

Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go