Correlation Between Utilities Select and Formcap Corp

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

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

Diversification Opportunities for Utilities Select and Formcap Corp

0.0

Correlation Coefficient

Utilities Select  Formcap Corp

Pay attention - limited upside

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

Pair Corralation between Utilities Select and Formcap Corp

If you would invest  8,306  in Utilities Select Sector on July 27, 2025 and sell it today you would earn a total of  833.00  from holding Utilities Select Sector or generate 10.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Utilities Select Sector  vs.  Formcap Corp

Utilities Select Sector

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Utilities Select Sector are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent essential indicators, Utilities Select may actually be approaching a critical reversion point that can send shares even higher in November 2025.

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.

Pair Trading with Utilities Select and Formcap Corp

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

The idea behind Utilities Select Sector and Formcap Corp 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..