Correlation Between Figs and Concord Medical

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

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

Diversification Opportunities for Figs and Concord Medical

-0.71

Correlation Coefficient

Figs  Concord Medical

Pay attention - limited upside

The 3 months correlation between Figs and Concord is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Figs Inc and Concord Medical Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Medical Services and Figs 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 Figs Inc are associated (or correlated) with Concord Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Medical Services has no effect on the direction of Figs i.e., Figs and Concord Medical go up and down completely randomly.

Pair Corralation between Figs and Concord Medical

Given the investment horizon of 90 days Figs Inc is expected to generate 0.63 times more return on investment than Concord Medical. However, Figs Inc is 1.6 times less risky than Concord Medical. It trades about 0.22 of its potential returns per unit of risk. Concord Medical Services is currently generating about -0.08 per unit of risk. If you would invest  451.00  in Figs Inc on May 3, 2025 and sell it today you would earn a total of  199.00  from holding Figs Inc or generate 44.12% return on investment over 90 days.

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

Figs Inc  vs.  Concord Medical Services

Figs Inc

Risk-Adjusted Performance

Solid

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

Concord Medical Services

Risk-Adjusted Performance

Very Weak

Over the last 90 days Concord Medical Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Figs and Concord Medical

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

The idea behind Figs Inc and Concord Medical Services 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.