Correlation Between Figs and 50247VAC3
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By analyzing existing cross correlation between Figs Inc and LYB INTL FIN, you can compare the effects of market volatilities on Figs and 50247VAC3 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 50247VAC3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figs and 50247VAC3.
Diversification Opportunities for Figs and 50247VAC3
Very weak diversification
The 3 months correlation between Figs and 50247VAC3 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Figs Inc and LYB INTL FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYB INTL FIN 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 50247VAC3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYB INTL FIN has no effect on the direction of Figs i.e., Figs and 50247VAC3 go up and down completely randomly.
Pair Corralation between Figs and 50247VAC3
Given the investment horizon of 90 days Figs Inc is expected to under-perform the 50247VAC3. In addition to that, Figs is 5.13 times more volatile than LYB INTL FIN. It trades about -0.08 of its total potential returns per unit of risk. LYB INTL FIN is currently generating about -0.15 per unit of volatility. If you would invest 9,152 in LYB INTL FIN on September 5, 2024 and sell it today you would lose (458.00) from holding LYB INTL FIN or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Figs Inc vs. LYB INTL FIN
Performance |
| Timeline |
| Figs Inc |
| LYB INTL FIN |
Figs and 50247VAC3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Figs and 50247VAC3
The main advantage of trading using opposite Figs and 50247VAC3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figs position performs unexpectedly, 50247VAC3 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 50247VAC3 will offset losses from the drop in 50247VAC3's long position.The idea behind Figs Inc and LYB INTL FIN 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.| 50247VAC3 vs. Citi Trends | 50247VAC3 vs. Burlington Stores | 50247VAC3 vs. Figs Inc | 50247VAC3 vs. PVH Corp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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