Correlation Between Genasys and FormFactor

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

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

Diversification Opportunities for Genasys and FormFactor

0.26

Correlation Coefficient

Genasys  FormFactor

Modest diversification

The 3 months correlation between Genasys and FormFactor is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Genasys and FormFactor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FormFactor and Genasys 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 Genasys 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 Genasys i.e., Genasys and FormFactor go up and down completely randomly.

Pair Corralation between Genasys and FormFactor

Given the investment horizon of 90 days Genasys is expected to under-perform the FormFactor. In addition to that, Genasys is 1.06 times more volatile than FormFactor. It trades about -0.04 of its total potential returns per unit of risk. FormFactor is currently generating about -0.04 per unit of volatility. If you would invest  3,217  in FormFactor on May 11, 2025 and sell it today you would lose (359.00) from holding FormFactor or give up 11.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Genasys  vs.  FormFactor

Genasys

Risk-Adjusted Performance

Weakest

Over the last 90 days Genasys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

FormFactor

Risk-Adjusted Performance

Weakest

Over the last 90 days FormFactor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Genasys and FormFactor

The main advantage of trading using opposite Genasys and FormFactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genasys 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 Genasys 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.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.