Correlation Between GM and Figma,

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

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

Diversification Opportunities for GM and Figma,

-0.84

Correlation Coefficient

GM  Figma,

Pay attention - limited upside

The 3 months correlation between GM and Figma, is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Figma, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figma, Inc and GM 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 General Motors are associated (or correlated) with Figma,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Figma, Inc has no effect on the direction of GM i.e., GM and Figma, go up and down completely randomly.

Pair Corralation between GM and Figma,

Allowing for the 90-day total investment horizon GM is expected to generate 5.12 times less return on investment than Figma,. But when comparing it to its historical volatility, General Motors is 8.03 times less risky than Figma,. It trades about 0.09 of its potential returns per unit of risk. Figma, Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,070  in Figma, Inc on September 9, 2025 and sell it today you would earn a total of  1,656  from holding Figma, Inc or generate 80.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	82.53%
Values	Daily Returns

General Motors  vs.  Figma, Inc

General Motors

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in General Motors are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile primary indicators, GM displayed solid returns over the last few months and may actually be approaching a breakup point.

Figma, Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Figma, Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Etf's forward indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

Pair Trading with GM and Figma,

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

The idea behind General Motors and Figma, Inc 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.