Correlation Between Figma, and Proshares Russell

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

By analyzing existing cross correlation between Figma, Inc and Proshares Russell 2000, you can compare the effects of market volatilities on Figma, and Proshares Russell 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 Figma, with a short position of Proshares Russell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figma, and Proshares Russell.

Diversification Opportunities for Figma, and Proshares Russell

0.25

Correlation Coefficient

Figma,  Proshares Russell

Modest diversification

The 3 months correlation between Figma, and Proshares is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Figma, Inc and Proshares Russell 2000 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proshares Russell 2000 and Figma, 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 Figma, Inc are associated (or correlated) with Proshares Russell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proshares Russell 2000 has no effect on the direction of Figma, i.e., Figma, and Proshares Russell go up and down completely randomly.

Pair Corralation between Figma, and Proshares Russell

Considering the 90-day investment horizon Figma, Inc is expected to generate 64.58 times more return on investment than Proshares Russell. However, Figma, is 64.58 times more volatile than Proshares Russell 2000. It trades about 0.27 of its potential returns per unit of risk. Proshares Russell 2000 is currently generating about -0.04 per unit of risk. If you would invest  3,300  in Figma, Inc on May 13, 2025 and sell it today you would earn a total of  4,511  from holding Figma, Inc or generate 136.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	45.45%
Values	Daily Returns

Figma, Inc  vs.  Proshares Russell 2000

Figma, Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Figma, Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady forward indicators, Figma, reported solid returns over the last few months and may actually be approaching a breakup point.

Proshares Russell 2000

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Proshares Russell 2000 are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Proshares Russell may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Figma, and Proshares Russell

The main advantage of trading using opposite Figma, and Proshares Russell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figma, position performs unexpectedly, Proshares Russell 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 Proshares Russell will offset losses from the drop in Proshares Russell's long position.

The idea behind Figma, Inc and Proshares Russell 2000 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.