Correlation Between Figs and AIB Acquisition
Can any of the company-specific risk be diversified away by investing in both Figs and AIB Acquisition 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 Figs and AIB Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Figs Inc and AIB Acquisition Corp, you can compare the effects of market volatilities on Figs and AIB Acquisition 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 Figs with a short position of AIB Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figs and AIB Acquisition.
Diversification Opportunities for Figs and AIB Acquisition
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Figs and AIB is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Figs Inc and AIB Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIB Acquisition Corp and Figs 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 Figs Inc are associated (or correlated) with AIB Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIB Acquisition Corp has no effect on the direction of Figs i.e., Figs and AIB Acquisition go up and down completely randomly.
Pair Corralation between Figs and AIB Acquisition
Given the investment horizon of 90 days Figs is expected to generate 1.95 times less return on investment than AIB Acquisition. In addition to that, Figs is 12.87 times more volatile than AIB Acquisition Corp. It trades about 0.01 of its total potential returns per unit of risk. AIB Acquisition Corp is currently generating about 0.14 per unit of volatility. If you would invest 1,024 in AIB Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 67.00 from holding AIB Acquisition Corp or generate 6.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 30.71% |
| Values | Daily Returns |
Figs Inc vs. AIB Acquisition Corp
Performance |
| Timeline |
| Figs Inc |
| AIB Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Figs and AIB Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Figs and AIB Acquisition
The main advantage of trading using opposite Figs and AIB Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figs position performs unexpectedly, AIB Acquisition 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 AIB Acquisition will offset losses from the drop in AIB Acquisition's long position.The idea behind Figs Inc and AIB Acquisition 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.| AIB Acquisition vs. Figs Inc | AIB Acquisition vs. Burlington Stores | AIB Acquisition vs. Kontoor Brands | AIB Acquisition vs. Canlan Ice Sports |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |