Correlation Between J Long and Figs

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

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

Diversification Opportunities for J Long and Figs

0.81

Correlation Coefficient

J Long  Figs

Very poor diversification

The 3 months correlation between J Long and Figs is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding J Long Group Limited and Figs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figs Inc and J Long 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 J Long Group Limited 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 J Long i.e., J Long and Figs go up and down completely randomly.

Pair Corralation between J Long and Figs

Allowing for the 90-day total investment horizon J Long Group Limited is expected to generate 1.14 times more return on investment than Figs. However, J Long is 1.14 times more volatile than Figs Inc. It trades about 0.3 of its potential returns per unit of risk. Figs Inc is currently generating about 0.19 per unit of risk. If you would invest  335.00  in J Long Group Limited on May 4, 2025 and sell it today you would earn a total of  272.00  from holding J Long Group Limited or generate 81.19% return on investment over 90 days.

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

J Long Group Limited  vs.  Figs Inc

J Long Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in J Long Group Limited are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady essential indicators, J Long disclosed solid returns over the last few months and may actually be approaching a breakup point.

Figs Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Figs Inc are ranked lower than 14 (%) 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.

Pair Trading with J Long and Figs

The main advantage of trading using opposite J Long and Figs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Long 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.

The idea behind J Long Group Limited and Figs 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.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.