Correlation Between PGE Corp and FormFactor
Can any of the company-specific risk be diversified away by investing in both PGE 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 PGE Corp and FormFactor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGE Corp and FormFactor, you can compare the effects of market volatilities on PGE 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 PGE Corp with a short position of FormFactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGE Corp and FormFactor.
Diversification Opportunities for PGE Corp and FormFactor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PGE and FormFactor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PGE Corp and FormFactor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FormFactor and PGE 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 PGE 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 PGE Corp i.e., PGE Corp and FormFactor go up and down completely randomly.
Pair Corralation between PGE Corp and FormFactor
If you would invest (100.00) in PGE Corp on May 29, 2025 and sell it today you would earn a total of 100.00 from holding PGE Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PGE Corp vs. FormFactor
Performance |
| Timeline |
| PGE Corp |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| FormFactor |
PGE Corp and FormFactor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGE Corp and FormFactor
The main advantage of trading using opposite PGE Corp and FormFactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGE 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.The idea behind PGE 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 vs. SolarEdge Technologies | FormFactor vs. First Solar | FormFactor vs. Sunrun Inc | FormFactor vs. Canadian Solar |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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