Correlation Between FDG Electric and OppFi
Can any of the company-specific risk be diversified away by investing in both FDG Electric 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 FDG Electric and OppFi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FDG Electric Vehicles and OppFi Inc, you can compare the effects of market volatilities on FDG Electric 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 FDG Electric with a short position of OppFi. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and OppFi.
Diversification Opportunities for FDG Electric and OppFi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FDG and OppFi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles and OppFi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OppFi Inc and FDG Electric 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 FDG Electric Vehicles 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 FDG Electric i.e., FDG Electric and OppFi go up and down completely randomly.
Pair Corralation between FDG Electric and OppFi
If you would invest 485.00 in OppFi Inc on September 4, 2024 and sell it today you would earn a total of 331.00 from holding OppFi Inc or generate 68.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
FDG Electric Vehicles vs. OppFi Inc
Performance |
| Timeline |
| FDG Electric Vehicles |
| OppFi Inc |
FDG Electric and OppFi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDG Electric and OppFi
The main advantage of trading using opposite FDG Electric and OppFi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric 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.| FDG Electric vs. Burlington Stores | FDG Electric vs. Under Armour C | FDG Electric vs. Tandy Leather Factory | FDG Electric vs. Precision Drilling |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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