Correlation Between Clear Secure and Figs
Can any of the company-specific risk be diversified away by investing in both Clear Secure 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 Clear Secure and Figs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clear Secure and Figs Inc, you can compare the effects of market volatilities on Clear Secure 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 Clear Secure with a short position of Figs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clear Secure and Figs.
Diversification Opportunities for Clear Secure and Figs
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Clear and Figs is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Clear Secure and Figs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figs Inc and Clear Secure 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 Clear Secure 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 Clear Secure i.e., Clear Secure and Figs go up and down completely randomly.
Pair Corralation between Clear Secure and Figs
Considering the 90-day investment horizon Clear Secure is expected to under-perform the Figs. But the stock apears to be less risky and, when comparing its historical volatility, Clear Secure is 1.32 times less risky than Figs. The stock trades about -0.07 of its potential returns per unit of risk. The Figs Inc is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 675.00 in Figs Inc on November 1, 2024 and sell it today you would lose (108.00) from holding Figs Inc or give up 16.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clear Secure vs. Figs Inc
Performance |
| Timeline |
| Clear Secure |
| Figs Inc |
Clear Secure and Figs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clear Secure and Figs
The main advantage of trading using opposite Clear Secure and Figs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clear Secure 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.| Clear Secure vs. Braze Inc | Clear Secure vs. Enfusion | Clear Secure vs. Freshworks | Clear Secure vs. Clearwater Analytics Holdings |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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