Correlation Between FormFactor and Atomera
Can any of the company-specific risk be diversified away by investing in both FormFactor and Atomera 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 Atomera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FormFactor and Atomera, you can compare the effects of market volatilities on FormFactor and Atomera 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 Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of FormFactor and Atomera.
Diversification Opportunities for FormFactor and Atomera
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FormFactor and Atomera is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding FormFactor and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera 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 Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of FormFactor i.e., FormFactor and Atomera go up and down completely randomly.
Pair Corralation between FormFactor and Atomera
Given the investment horizon of 90 days FormFactor is expected to under-perform the Atomera. But the stock apears to be less risky and, when comparing its historical volatility, FormFactor is 2.16 times less risky than Atomera. The stock trades about -0.06 of its potential returns per unit of risk. The Atomera is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 266.00 in Atomera on August 28, 2024 and sell it today you would earn a total of 404.00 from holding Atomera or generate 151.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FormFactor vs. Atomera
Performance |
| Timeline |
| FormFactor |
| Atomera |
FormFactor and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FormFactor and Atomera
The main advantage of trading using opposite FormFactor and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FormFactor position performs unexpectedly, Atomera 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 Atomera will offset losses from the drop in Atomera's long position.| FormFactor vs. Silicon Laboratories | FormFactor vs. Diodes Incorporated | FormFactor vs. MACOM Technology Solutions | FormFactor vs. Amkor Technology |
| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera vs. Photronics |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| CEOs Directory Screen CEOs from public companies around the world |