Correlation Between Expand Energy and OppFi
Can any of the company-specific risk be diversified away by investing in both Expand Energy 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 Expand Energy and OppFi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expand Energy and OppFi Inc, you can compare the effects of market volatilities on Expand Energy 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 Expand Energy with a short position of OppFi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expand Energy and OppFi.
Diversification Opportunities for Expand Energy and OppFi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Expand and OppFi is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Expand Energy and OppFi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OppFi Inc and Expand Energy 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 Expand Energy 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 Expand Energy i.e., Expand Energy and OppFi go up and down completely randomly.
Pair Corralation between Expand Energy and OppFi
Assuming the 90 days horizon Expand Energy is expected to generate 6.65 times less return on investment than OppFi. But when comparing it to its historical volatility, Expand Energy is 2.33 times less risky than OppFi. It trades about 0.07 of its potential returns per unit of risk. OppFi Inc is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 270.00 in OppFi Inc on November 3, 2024 and sell it today you would earn a total of 1,101 from holding OppFi Inc or generate 407.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.46% |
| Values | Daily Returns |
Expand Energy vs. OppFi Inc
Performance |
| Timeline |
| Expand Energy |
| OppFi Inc |
Expand Energy and OppFi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expand Energy and OppFi
The main advantage of trading using opposite Expand Energy and OppFi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand Energy 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.| Expand Energy vs. BRP Inc | Expand Energy vs. Life Time Group | Expand Energy vs. Pintec Technology Holdings | Expand Energy vs. Nasdaq Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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