Correlation Between Figs and Birkenstock Holding
Can any of the company-specific risk be diversified away by investing in both Figs and Birkenstock Holding 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 Birkenstock Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Figs Inc and Birkenstock Holding plc, you can compare the effects of market volatilities on Figs and Birkenstock Holding 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 Birkenstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figs and Birkenstock Holding.
Diversification Opportunities for Figs and Birkenstock Holding
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Figs and Birkenstock is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Figs Inc and Birkenstock Holding plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birkenstock Holding plc 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 Birkenstock Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birkenstock Holding plc has no effect on the direction of Figs i.e., Figs and Birkenstock Holding go up and down completely randomly.
Pair Corralation between Figs and Birkenstock Holding
Given the investment horizon of 90 days Figs Inc is expected to under-perform the Birkenstock Holding. In addition to that, Figs is 1.45 times more volatile than Birkenstock Holding plc. It trades about -0.01 of its total potential returns per unit of risk. Birkenstock Holding plc is currently generating about 0.03 per unit of volatility. If you would invest 4,600 in Birkenstock Holding plc on September 12, 2024 and sell it today you would earn a total of 837.00 from holding Birkenstock Holding plc or generate 18.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 83.81% |
| Values | Daily Returns |
Figs Inc vs. Birkenstock Holding plc
Performance |
| Timeline |
| Figs Inc |
| Birkenstock Holding plc |
Figs and Birkenstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Figs and Birkenstock Holding
The main advantage of trading using opposite Figs and Birkenstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figs position performs unexpectedly, Birkenstock Holding 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 Birkenstock Holding will offset losses from the drop in Birkenstock Holding's long position.The idea behind Figs Inc and Birkenstock Holding plc 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.| Birkenstock Holding vs. Lululemon Athletica | Birkenstock Holding vs. Sphere Entertainment Co | Birkenstock Holding vs. Iridium Communications | Birkenstock Holding vs. BCE Inc |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |