Correlation Between Shoe Carnival and Figs

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

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

Diversification Opportunities for Shoe Carnival and Figs

0.61

Correlation Coefficient

Shoe Carnival  Figs

Poor diversification

The 3 months correlation between Shoe and Figs is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shoe Carnival and Figs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figs Inc and Shoe Carnival 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 Shoe Carnival 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 Shoe Carnival i.e., Shoe Carnival and Figs go up and down completely randomly.

Pair Corralation between Shoe Carnival and Figs

Given the investment horizon of 90 days Shoe Carnival is expected to generate 1.76 times less return on investment than Figs. In addition to that, Shoe Carnival is 1.35 times more volatile than Figs Inc. It trades about 0.04 of its total potential returns per unit of risk. Figs Inc is currently generating about 0.1 per unit of volatility. If you would invest  565.00  in Figs Inc on July 1, 2025 and sell it today you would earn a total of  94.00  from holding Figs Inc or generate 16.64% return on investment over 90 days.

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

Shoe Carnival  vs.  Figs Inc

Shoe Carnival

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Shoe Carnival are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Shoe Carnival may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Figs Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Figs Inc are ranked lower than 8 (%) 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 Shoe Carnival and Figs

The main advantage of trading using opposite Shoe Carnival and Figs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shoe Carnival 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 Shoe Carnival 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.