Correlation Between Agrify Corp and OppFi
Can any of the company-specific risk be diversified away by investing in both Agrify Corp and OppFi 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 Agrify Corp and OppFi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrify Corp and OppFi Inc, you can compare the effects of market volatilities on Agrify Corp and OppFi 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 Agrify Corp with a short position of OppFi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrify Corp and OppFi.
Diversification Opportunities for Agrify Corp and OppFi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Agrify and OppFi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and OppFi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OppFi Inc and Agrify 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 Agrify Corp are associated (or correlated) with OppFi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OppFi Inc has no effect on the direction of Agrify Corp i.e., Agrify Corp and OppFi go up and down completely randomly.
Pair Corralation between Agrify Corp and OppFi
Given the investment horizon of 90 days Agrify Corp is expected to generate 1.08 times less return on investment than OppFi. In addition to that, Agrify Corp is 2.3 times more volatile than OppFi Inc. It trades about 0.04 of its total potential returns per unit of risk. OppFi Inc is currently generating about 0.1 per unit of volatility. If you would invest 216.00 in OppFi Inc on September 4, 2024 and sell it today you would earn a total of 600.00 from holding OppFi Inc or generate 277.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Agrify Corp vs. OppFi Inc
Performance |
| Timeline |
| Agrify Corp |
| OppFi Inc |
Agrify Corp and OppFi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrify Corp and OppFi
The main advantage of trading using opposite Agrify Corp and OppFi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrify Corp position performs unexpectedly, OppFi 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 OppFi will offset losses from the drop in OppFi's long position.| Agrify Corp vs. MYR Group | Agrify Corp vs. Granite Construction Incorporated | Agrify Corp vs. Construction Partners | Agrify Corp vs. Great Lakes Dredge |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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