Correlation Between FormFactor and Roma Green
Can any of the company-specific risk be diversified away by investing in both FormFactor and Roma Green 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 Roma Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FormFactor and Roma Green Finance, you can compare the effects of market volatilities on FormFactor and Roma Green 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 Roma Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of FormFactor and Roma Green.
Diversification Opportunities for FormFactor and Roma Green
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FormFactor and Roma is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FormFactor and Roma Green Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roma Green Finance 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 Roma Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roma Green Finance has no effect on the direction of FormFactor i.e., FormFactor and Roma Green go up and down completely randomly.
Pair Corralation between FormFactor and Roma Green
Given the investment horizon of 90 days FormFactor is expected to under-perform the Roma Green. But the stock apears to be less risky and, when comparing its historical volatility, FormFactor is 1.97 times less risky than Roma Green. The stock trades about -0.14 of its potential returns per unit of risk. The Roma Green Finance is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 76.00 in Roma Green Finance on November 3, 2024 and sell it today you would lose (2.00) from holding Roma Green Finance or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FormFactor vs. Roma Green Finance
Performance |
| Timeline |
| FormFactor |
| Roma Green Finance |
FormFactor and Roma Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FormFactor and Roma Green
The main advantage of trading using opposite FormFactor and Roma Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FormFactor position performs unexpectedly, Roma Green 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 Roma Green will offset losses from the drop in Roma Green's long position.| FormFactor vs. Silicon Laboratories | FormFactor vs. Diodes Incorporated | FormFactor vs. MACOM Technology Solutions | FormFactor vs. Amkor Technology |
| Roma Green vs. MOGU Inc | Roma Green vs. Playa Hotels Resorts | Roma Green vs. RLJ Lodging Trust | Roma Green vs. Asbury Automotive Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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