Correlation Between Blackstone and OppFi
Can any of the company-specific risk be diversified away by investing in both Blackstone 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 Blackstone and OppFi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and OppFi Inc, you can compare the effects of market volatilities on Blackstone 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 Blackstone with a short position of OppFi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and OppFi.
Diversification Opportunities for Blackstone and OppFi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackstone and OppFi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and OppFi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OppFi Inc and Blackstone 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 Blackstone Group 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 Blackstone i.e., Blackstone and OppFi go up and down completely randomly.
Pair Corralation between Blackstone and OppFi
Allowing for the 90-day total investment horizon Blackstone is expected to generate 2.36 times less return on investment than OppFi. But when comparing it to its historical volatility, Blackstone Group is 3.54 times less risky than OppFi. It trades about 0.45 of its potential returns per unit of risk. OppFi Inc is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 539.00 in OppFi Inc on August 27, 2024 and sell it today you would earn a total of 222.00 from holding OppFi Inc or generate 41.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. OppFi Inc
Performance |
| Timeline |
| Blackstone Group |
| OppFi Inc |
Blackstone and OppFi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and OppFi
The main advantage of trading using opposite Blackstone and OppFi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone 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.| Blackstone vs. PowerUp Acquisition Corp | Blackstone vs. Aurora Innovation | Blackstone vs. HUMANA INC | Blackstone vs. Aquagold International |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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