Correlation Between Enovis Corp and Figs

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

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

Diversification Opportunities for Enovis Corp and Figs

-0.65

Correlation Coefficient

Enovis Corp  Figs

Excellent diversification

The 3 months correlation between Enovis and Figs is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Enovis Corp and Figs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figs Inc and Enovis Corp 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 Enovis Corp 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 Enovis Corp i.e., Enovis Corp and Figs go up and down completely randomly.

Pair Corralation between Enovis Corp and Figs

Given the investment horizon of 90 days Enovis Corp is expected to generate 0.46 times more return on investment than Figs. However, Enovis Corp is 2.15 times less risky than Figs. It trades about 0.04 of its potential returns per unit of risk. Figs Inc is currently generating about -0.03 per unit of risk. If you would invest  4,660  in Enovis Corp on August 30, 2024 and sell it today you would earn a total of  185.00  from holding Enovis Corp or generate 3.97% return on investment over 90 days.

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

Enovis Corp  vs.  Figs Inc

Enovis Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Enovis Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Enovis Corp is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Figs Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Figs Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Enovis Corp and Figs

The main advantage of trading using opposite Enovis Corp and Figs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enovis Corp 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 Enovis Corp 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.