Correlation Between Formcap Corp and SDX Energy

Can any of the company-specific risk be diversified away by investing in both Formcap Corp and SDX Energy 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 Formcap Corp and SDX Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Formcap Corp and SDX Energy plc, you can compare the effects of market volatilities on Formcap Corp and SDX Energy 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 Formcap Corp with a short position of SDX Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Formcap Corp and SDX Energy.

Diversification Opportunities for Formcap Corp and SDX Energy

0.0

Correlation Coefficient

Formcap Corp  SDX Energy

Pay attention - limited upside

The 3 months correlation between Formcap and SDX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Formcap Corp and SDX Energy plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDX Energy plc and Formcap 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 Formcap Corp are associated (or correlated) with SDX Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDX Energy plc has no effect on the direction of Formcap Corp i.e., Formcap Corp and SDX Energy go up and down completely randomly.

Pair Corralation between Formcap Corp and SDX Energy

If you would invest  0.21  in Formcap Corp on July 31, 2025 and sell it today you would earn a total of  0.00  from holding Formcap Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Formcap Corp  vs.  SDX Energy plc

Formcap Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Formcap Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Formcap Corp is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

SDX Energy plc

Risk-Adjusted Performance

Weakest

Over the last 90 days SDX Energy plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Formcap Corp and SDX Energy

The main advantage of trading using opposite Formcap Corp and SDX Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Formcap Corp position performs unexpectedly, SDX Energy 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 SDX Energy will offset losses from the drop in SDX Energy's long position.

The idea behind Formcap Corp and SDX Energy plc 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.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .