Correlation Between Figs and Talkspace

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

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

Diversification Opportunities for Figs and Talkspace

-0.5

Correlation Coefficient

Figs  Talkspace

Very good diversification

The 3 months correlation between Figs and Talkspace is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Figs Inc and Talkspace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talkspace 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 Talkspace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talkspace has no effect on the direction of Figs i.e., Figs and Talkspace go up and down completely randomly.

Pair Corralation between Figs and Talkspace

Given the investment horizon of 90 days Figs Inc is expected to generate 0.29 times more return on investment than Talkspace. However, Figs Inc is 3.42 times less risky than Talkspace. It trades about 0.23 of its potential returns per unit of risk. Talkspace is currently generating about -0.01 per unit of risk. If you would invest  452.00  in Figs Inc on May 2, 2025 and sell it today you would earn a total of  207.00  from holding Figs Inc or generate 45.8% return on investment over 90 days.

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

Figs Inc  vs.  Talkspace

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.

Talkspace

Risk-Adjusted Performance

Very Weak

Over the last 90 days Talkspace has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward-looking signals remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Figs and Talkspace

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

The idea behind Figs Inc and Talkspace 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.

Check out your portfolio center.

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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.