Correlation Between Figs and Pro Dex

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

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

Diversification Opportunities for Figs and Pro Dex

-0.2

Correlation Coefficient

Figs  Pro Dex

Good diversification

The 3 months correlation between Figs and Pro is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Figs Inc and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex 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 Pro Dex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Dex has no effect on the direction of Figs i.e., Figs and Pro Dex go up and down completely randomly.

Pair Corralation between Figs and Pro Dex

Given the investment horizon of 90 days Figs Inc is expected to generate 0.59 times more return on investment than Pro Dex. However, Figs Inc is 1.69 times less risky than Pro Dex. It trades about 0.27 of its potential returns per unit of risk. Pro Dex is currently generating about -0.05 per unit of risk. If you would invest  403.00  in Figs Inc on May 1, 2025 and sell it today you would earn a total of  264.00  from holding Figs Inc or generate 65.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Figs Inc  vs.  Pro Dex

Figs Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Figs Inc are ranked lower than 21 (%) 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.

Pro Dex

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pro Dex 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 technical and fundamental indicators remain fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Figs and Pro Dex

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

The idea behind Figs Inc and Pro Dex 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.