Correlation Between Figs and Nuvve Holding

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

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

Diversification Opportunities for Figs and Nuvve Holding

0.62

Correlation Coefficient

Figs  Nuvve Holding

Poor diversification

The 3 months correlation between Figs and Nuvve is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Figs Inc and Nuvve Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuvve Holding Corp 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 Nuvve Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuvve Holding Corp has no effect on the direction of Figs i.e., Figs and Nuvve Holding go up and down completely randomly.

Pair Corralation between Figs and Nuvve Holding

Given the investment horizon of 90 days Figs Inc is expected to generate 0.4 times more return on investment than Nuvve Holding. However, Figs Inc is 2.5 times less risky than Nuvve Holding. It trades about 0.01 of its potential returns per unit of risk. Nuvve Holding Corp is currently generating about -0.04 per unit of risk. If you would invest  755.00  in Figs Inc on September 26, 2024 and sell it today you would lose (193.00) from holding Figs Inc or give up 25.56% of portfolio value over 90 days.

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

Figs Inc  vs.  Nuvve Holding Corp

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.

Nuvve Holding Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuvve Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Figs and Nuvve Holding

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

The idea behind Figs Inc and Nuvve Holding Corp 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.