Correlation Between Figma, and SPDR SP

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

By analyzing existing cross correlation between Figma, Inc and SPDR SP Transportation, you can compare the effects of market volatilities on Figma, and SPDR SP 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 SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figma, and SPDR SP.

Diversification Opportunities for Figma, and SPDR SP

0.18

Correlation Coefficient

Figma,  SPDR SP

Average diversification

The 3 months correlation between Figma, and SPDR is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Figma, Inc and SPDR SP Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Transportation 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 SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Transportation has no effect on the direction of Figma, i.e., Figma, and SPDR SP go up and down completely randomly.

Pair Corralation between Figma, and SPDR SP

Considering the 90-day investment horizon Figma, Inc is expected to generate 35.88 times more return on investment than SPDR SP. However, Figma, is 35.88 times more volatile than SPDR SP Transportation. It trades about 0.23 of its potential returns per unit of risk. SPDR SP Transportation is currently generating about 0.06 per unit of risk. If you would invest  2,219  in Figma, Inc on May 10, 2025 and sell it today you would earn a total of  5,605  from holding Figma, Inc or generate 252.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	34.43%
Values	Daily Returns

Figma, Inc  vs.  SPDR SP Transportation

Figma, Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Figma, Inc are ranked lower than 17 (%) 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.

SPDR SP Transportation

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR SP Transportation are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, SPDR SP is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Figma, and SPDR SP

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

The idea behind Figma, Inc and SPDR SP Transportation 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.