Correlation Between Fossil and Figs

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Fossil and Figs 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 Fossil and Figs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fossil Group and Figs Inc, you can compare the effects of market volatilities on Fossil and Figs 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 Fossil with a short position of Figs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fossil and Figs.

Diversification Opportunities for Fossil and Figs

-0.08
  Correlation Coefficient

Good diversification

The 3 months correlation between Fossil and Figs is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fossil Group and Figs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figs Inc and Fossil 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 Fossil Group are associated (or correlated) with Figs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Figs Inc has no effect on the direction of Fossil i.e., Fossil and Figs go up and down completely randomly.

Pair Corralation between Fossil and Figs

Given the investment horizon of 90 days Fossil Group is expected to generate 1.56 times more return on investment than Figs. However, Fossil is 1.56 times more volatile than Figs Inc. It trades about 0.07 of its potential returns per unit of risk. Figs Inc is currently generating about 0.0 per unit of risk. If you would invest  122.00  in Fossil Group on September 4, 2024 and sell it today you would earn a total of  113.00  from holding Fossil Group or generate 92.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Fossil Group  vs.  Figs Inc

 Performance 
       Timeline  
Fossil Group 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Fossil Group are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Fossil disclosed solid returns over the last few months and may actually be approaching a breakup point.
Figs Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Figs Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Figs is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Fossil and Figs Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fossil and Figs

The main advantage of trading using opposite Fossil and Figs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fossil position performs unexpectedly, Figs 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 Figs will offset losses from the drop in Figs' long position.
The idea behind Fossil Group and Figs Inc 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

Other Complementary Tools

ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Bonds Directory
Find actively traded corporate debentures issued by US companies