Correlation Between Figs and Albany International

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

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

Diversification Opportunities for Figs and Albany International

-0.39

Correlation Coefficient

Figs  Albany International

Very good diversification

The 3 months correlation between Figs and Albany is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Figs Inc and Albany International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albany International and Figs 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 Figs Inc are associated (or correlated) with Albany International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albany International has no effect on the direction of Figs i.e., Figs and Albany International go up and down completely randomly.

Pair Corralation between Figs and Albany International

Given the investment horizon of 90 days Figs Inc is expected to under-perform the Albany International. In addition to that, Figs is 2.11 times more volatile than Albany International. It trades about 0.0 of its total potential returns per unit of risk. Albany International is currently generating about 0.0 per unit of volatility. If you would invest  8,659  in Albany International on September 14, 2024 and sell it today you would lose (448.00) from holding Albany International or give up 5.17% of portfolio value over 90 days.

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

Figs Inc  vs.  Albany International

Figs Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Figs Inc are ranked lower than 4 (%) 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.

Albany International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Albany International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Albany International is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Figs and Albany International

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

The idea behind Figs Inc and Albany International 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.