Correlation Between Global E and Figs
Can any of the company-specific risk be diversified away by investing in both Global E and Figs 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 Global E and Figs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global E Online and Figs Inc, you can compare the effects of market volatilities on Global E and Figs 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 Global E with a short position of Figs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and Figs.
Diversification Opportunities for Global E and Figs
Good diversification
The 3 months correlation between Global and Figs is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and Figs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figs Inc and Global E 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 Global E Online are associated (or correlated) with Figs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Figs Inc has no effect on the direction of Global E i.e., Global E and Figs go up and down completely randomly.
Pair Corralation between Global E and Figs
Given the investment horizon of 90 days Global E Online is expected to under-perform the Figs. In addition to that, Global E is 1.11 times more volatile than Figs Inc. It trades about -0.05 of its total potential returns per unit of risk. Figs Inc is currently generating about 0.19 per unit of volatility. If you would invest 451.00 in Figs Inc on May 5, 2025 and sell it today you would earn a total of 170.00 from holding Figs Inc or generate 37.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Global E Online vs. Figs Inc
Performance |
Timeline |
Global E Online |
Figs Inc |
Global E and Figs Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global E and Figs
The main advantage of trading using opposite Global E and Figs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E position performs unexpectedly, Figs 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 Figs will offset losses from the drop in Figs' long position.Global E vs. Sea | Global E vs. MercadoLibre | Global E vs. Jumia Technologies AG | Global E vs. PDD Holdings |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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