Correlation Between AMA Group and OppFi
Can any of the company-specific risk be diversified away by investing in both AMA Group 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 AMA Group and OppFi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMA Group Limited and OppFi Inc, you can compare the effects of market volatilities on AMA Group 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 AMA Group with a short position of OppFi. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMA Group and OppFi.
Diversification Opportunities for AMA Group and OppFi
Poor diversification
The 3 months correlation between AMA and OppFi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding AMA Group Limited and OppFi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OppFi Inc and AMA Group 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 AMA Group Limited 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 AMA Group i.e., AMA Group and OppFi go up and down completely randomly.
Pair Corralation between AMA Group and OppFi
Assuming the 90 days horizon AMA Group Limited is expected to generate 14.26 times more return on investment than OppFi. However, AMA Group is 14.26 times more volatile than OppFi Inc. It trades about 0.09 of its potential returns per unit of risk. OppFi Inc is currently generating about 0.1 per unit of risk. If you would invest 8.00 in AMA Group Limited on September 4, 2024 and sell it today you would lose (3.25) from holding AMA Group Limited or give up 40.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMA Group Limited vs. OppFi Inc
Performance |
| Timeline |
| AMA Group Limited |
| OppFi Inc |
AMA Group and OppFi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMA Group and OppFi
The main advantage of trading using opposite AMA Group and OppFi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMA Group 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.| AMA Group vs. Adient PLC | AMA Group vs. Lear Corporation | AMA Group vs. Autoliv | AMA Group vs. American Axle Manufacturing |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |