Correlation Between QuickLogic and FormFactor

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

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

Diversification Opportunities for QuickLogic and FormFactor

0.78

Correlation Coefficient

QuickLogic  FormFactor

Poor diversification

The 3 months correlation between QuickLogic and FormFactor is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding QuickLogic and FormFactor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FormFactor and QuickLogic 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 QuickLogic 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 QuickLogic i.e., QuickLogic and FormFactor go up and down completely randomly.

Pair Corralation between QuickLogic and FormFactor

Given the investment horizon of 90 days QuickLogic is expected to generate 2.17 times more return on investment than FormFactor. However, QuickLogic is 2.17 times more volatile than FormFactor. It trades about 0.0 of its potential returns per unit of risk. FormFactor is currently generating about -0.05 per unit of risk. If you would invest  632.00  in QuickLogic on April 28, 2025 and sell it today you would lose (11.00) from holding QuickLogic or give up 1.74% of portfolio value over 90 days.

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

QuickLogic  vs.  FormFactor

QuickLogic

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in QuickLogic are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain forward indicators, QuickLogic disclosed solid returns over the last few months and may actually be approaching a breakup point.

FormFactor

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FormFactor are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, FormFactor displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with QuickLogic and FormFactor

The main advantage of trading using opposite QuickLogic and FormFactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QuickLogic 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 QuickLogic 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.