Correlation Between Electromed and Figs

Can any of the company-specific risk be diversified away by investing in both Electromed 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 Electromed and Figs into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Electromed and Figs Inc, you can compare the effects of market volatilities on Electromed 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 Electromed with a short position of Figs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electromed and Figs.

Diversification Opportunities for Electromed and Figs

-0.63

Correlation Coefficient

Electromed  Figs

Excellent diversification

The 3 months correlation between Electromed and Figs is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Electromed and Figs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figs Inc and Electromed 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 Electromed 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 Electromed i.e., Electromed and Figs go up and down completely randomly.

Pair Corralation between Electromed and Figs

Given the investment horizon of 90 days Electromed is expected to under-perform the Figs. In addition to that, Electromed is 1.1 times more volatile than Figs Inc. It trades about -0.09 of its total potential returns per unit of risk. Figs Inc is currently generating about 0.19 per unit of volatility. If you would invest  451.00  in Figs Inc on May 4, 2025 and sell it today you would earn a total of  170.00  from holding Figs Inc or generate 37.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Electromed  vs.  Figs Inc

Electromed

Risk-Adjusted Performance

Very Weak

Over the last 90 days Electromed has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Figs Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Figs Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Figs unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Electromed and Figs

The main advantage of trading using opposite Electromed and Figs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electromed 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 Electromed 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.