Correlation Between TechnipFMC PLC and OppFi
Can any of the company-specific risk be diversified away by investing in both TechnipFMC PLC 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 TechnipFMC PLC and OppFi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnipFMC PLC and OppFi Inc, you can compare the effects of market volatilities on TechnipFMC PLC 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 TechnipFMC PLC with a short position of OppFi. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnipFMC PLC and OppFi.
Diversification Opportunities for TechnipFMC PLC and OppFi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TechnipFMC and OppFi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding TechnipFMC PLC and OppFi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OppFi Inc and TechnipFMC PLC 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 TechnipFMC PLC 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 TechnipFMC PLC i.e., TechnipFMC PLC and OppFi go up and down completely randomly.
Pair Corralation between TechnipFMC PLC and OppFi
Considering the 90-day investment horizon TechnipFMC PLC is expected to generate 2.0 times less return on investment than OppFi. But when comparing it to its historical volatility, TechnipFMC PLC is 2.19 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 216.00 in OppFi Inc on September 4, 2024 and sell it today you would earn a total of 600.00 from holding OppFi Inc or generate 277.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
TechnipFMC PLC vs. OppFi Inc
Performance |
| Timeline |
| TechnipFMC PLC |
| OppFi Inc |
TechnipFMC PLC and OppFi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TechnipFMC PLC and OppFi
The main advantage of trading using opposite TechnipFMC PLC and OppFi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnipFMC PLC 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.| TechnipFMC PLC vs. Oil States International | TechnipFMC PLC vs. Geospace Technologies | TechnipFMC PLC vs. Weatherford International PLC | TechnipFMC PLC vs. Enerflex |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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