Correlation Between FormFactor and Open House
Can any of the company-specific risk be diversified away by investing in both FormFactor and Open House 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 Open House into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FormFactor and Open House Group, you can compare the effects of market volatilities on FormFactor and Open House 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 Open House. Check out your portfolio center. Please also check ongoing floating volatility patterns of FormFactor and Open House.
Diversification Opportunities for FormFactor and Open House
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FormFactor and Open is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding FormFactor and Open House Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Open House Group 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 Open House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Open House Group has no effect on the direction of FormFactor i.e., FormFactor and Open House go up and down completely randomly.
Pair Corralation between FormFactor and Open House
If you would invest 3,877 in FormFactor on September 5, 2024 and sell it today you would earn a total of 371.00 from holding FormFactor or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
FormFactor vs. Open House Group
Performance |
| Timeline |
| FormFactor |
| Open House Group |
FormFactor and Open House Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FormFactor and Open House
The main advantage of trading using opposite FormFactor and Open House positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FormFactor position performs unexpectedly, Open House 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 Open House will offset losses from the drop in Open House's long position.| FormFactor vs. Silicon Laboratories | FormFactor vs. Diodes Incorporated | FormFactor vs. MACOM Technology Solutions | FormFactor vs. Amkor Technology |
| Open House vs. Assurant | Open House vs. FormFactor | Open House vs. Kulicke and Soffa | Open House vs. Pekin Life Insurance |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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