Correlation Between FormFactor and Intel

By analyzing existing cross correlation between FormFactor and Intel you can compare the effects of market volatilities on FormFactor and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of FormFactor and Intel.

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Can any of the company-specific risk be diversified away by investing in both FormFactor and Intel at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing FormFactor and Intel into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for FormFactor and Intel

0.89
Correlation
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Very poor diversification

The 3 months correlation between FormFactor and Intel is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding FormFactor Inc and Intel Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of FormFactor i.e. FormFactor and Intel go up and down completely randomly.

Pair Corralation between FormFactor and Intel

Given the investment horizon of 30 days, FormFactor is expected to generate 1.07 times more return on investment than Intel. However, FormFactor is 1.07 times more volatile than Intel. It trades about 0.06 of its potential returns per unit of risk. Intel is currently generating about 0.05 per unit of risk. If you would invest  2,265  in FormFactor on April 30, 2020 and sell it today you would earn a total of  252.00  from holding FormFactor or generate 11.13% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

FormFactor Inc  vs.  Intel Corp.

 Performance (%) 
      Timeline 
FormFactor 
33

FormFactor Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in FormFactor are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Even with considerably unsteady technical indicators, FormFactor revealed solid returns over the last few months and may actually be approaching a breakup point.
Intel 
33

Intel Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Despite somewhat unsteady basic indicators, Intel sustained solid returns over the last few months and may actually be approaching a breakup point.

FormFactor and Intel Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Price Transformation module to use price transformation models to analyze depth of different equity instruments across global markets.


 
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