Correlation Between Brookfield Corp and OppFi
Can any of the company-specific risk be diversified away by investing in both Brookfield 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 Brookfield Corp and OppFi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Corp and OppFi Inc, you can compare the effects of market volatilities on Brookfield 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 Brookfield Corp with a short position of OppFi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Corp and OppFi.
Diversification Opportunities for Brookfield Corp and OppFi
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brookfield and OppFi is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Corp and OppFi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OppFi Inc and Brookfield 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 Brookfield 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 Brookfield Corp i.e., Brookfield Corp and OppFi go up and down completely randomly.
Pair Corralation between Brookfield Corp and OppFi
Allowing for the 90-day total investment horizon Brookfield Corp is expected to generate 2.48 times less return on investment than OppFi. But when comparing it to its historical volatility, Brookfield Corp is 2.73 times less risky than OppFi. It trades about 0.11 of its potential returns per unit of risk. OppFi Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 246.00 in OppFi Inc on August 27, 2024 and sell it today you would earn a total of 515.00 from holding OppFi Inc or generate 209.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Corp vs. OppFi Inc
Performance |
| Timeline |
| Brookfield Corp |
| OppFi Inc |
Brookfield Corp and OppFi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Corp and OppFi
The main advantage of trading using opposite Brookfield Corp and OppFi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield 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.| Brookfield Corp vs. KKR Co LP | Brookfield Corp vs. Blackstone Group | Brookfield Corp vs. T Rowe Price | Brookfield Corp vs. Apollo Global Management |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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