Correlation Between Tantech Holdings and Figs
Can any of the company-specific risk be diversified away by investing in both Tantech Holdings 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 Tantech Holdings and Figs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tantech Holdings and Figs Inc, you can compare the effects of market volatilities on Tantech Holdings 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 Tantech Holdings with a short position of Figs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tantech Holdings and Figs.
Diversification Opportunities for Tantech Holdings and Figs
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tantech and Figs is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Tantech Holdings and Figs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figs Inc and Tantech Holdings 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 Tantech Holdings 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 Tantech Holdings i.e., Tantech Holdings and Figs go up and down completely randomly.
Pair Corralation between Tantech Holdings and Figs
Given the investment horizon of 90 days Tantech Holdings is expected to under-perform the Figs. In addition to that, Tantech Holdings is 1.26 times more volatile than Figs Inc. It trades about 0.0 of its total potential returns per unit of risk. Figs Inc is currently generating about 0.28 per unit of volatility. If you would invest 435.00 in Figs Inc on May 31, 2025 and sell it today you would earn a total of 270.00 from holding Figs Inc or generate 62.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tantech Holdings vs. Figs Inc
Performance |
| Timeline |
| Tantech Holdings |
| Figs Inc |
Tantech Holdings and Figs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tantech Holdings and Figs
The main advantage of trading using opposite Tantech Holdings and Figs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tantech Holdings 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.| Tantech Holdings vs. Inter Parfums | Tantech Holdings vs. Yoshitsu Co Ltd | Tantech Holdings vs. European Wax Center | Tantech Holdings vs. Yatsen Holding |
Check out your portfolio center.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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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