Correlation Between Penguin Solutions, and FormFactor

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

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

Diversification Opportunities for Penguin Solutions, and FormFactor

0.26

Correlation Coefficient

Penguin Solutions,  FormFactor

Modest diversification

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

Pair Corralation between Penguin Solutions, and FormFactor

Given the investment horizon of 90 days Penguin Solutions, is expected to generate 1.16 times more return on investment than FormFactor. However, Penguin Solutions, is 1.16 times more volatile than FormFactor. It trades about 0.02 of its potential returns per unit of risk. FormFactor is currently generating about 0.01 per unit of risk. If you would invest  2,502  in Penguin Solutions, on May 14, 2025 and sell it today you would lose (165.00) from holding Penguin Solutions, or give up 6.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Penguin Solutions,  vs.  FormFactor

Penguin Solutions,

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Penguin Solutions, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Penguin Solutions, reported solid returns over the last few months and may actually be approaching a breakup point.

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 weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Penguin Solutions, and FormFactor

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

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..