Correlation Between Plaza Retail and Figs

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

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

Diversification Opportunities for Plaza Retail and Figs

0.52

Correlation Coefficient

Plaza Retail  Figs

Very weak diversification

The 3 months correlation between Plaza and Figs is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Retail REIT and Figs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figs Inc and Plaza Retail 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 Plaza Retail REIT 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 Plaza Retail i.e., Plaza Retail and Figs go up and down completely randomly.

Pair Corralation between Plaza Retail and Figs

Assuming the 90 days horizon Plaza Retail is expected to generate 15.18 times less return on investment than Figs. But when comparing it to its historical volatility, Plaza Retail REIT is 3.95 times less risky than Figs. It trades about 0.07 of its potential returns per unit of risk. Figs Inc is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  690.00  in Figs Inc on October 8, 2025 and sell it today you would earn a total of  449.00  from holding Figs Inc or generate 65.07% return on investment over 90 days.

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

Plaza Retail REIT  vs.  Figs Inc

Plaza Retail REIT

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Plaza Retail REIT are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Plaza Retail is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Figs Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Figs Inc are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent technical and fundamental indicators, Figs unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Plaza Retail and Figs

The main advantage of trading using opposite Plaza Retail and Figs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plaza Retail 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 Plaza Retail REIT 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.