Correlation Between Fortinet and OppFi
Can any of the company-specific risk be diversified away by investing in both Fortinet 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 Fortinet and OppFi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortinet and OppFi Inc, you can compare the effects of market volatilities on Fortinet 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 Fortinet with a short position of OppFi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortinet and OppFi.
Diversification Opportunities for Fortinet and OppFi
Almost no diversification
The 3 months correlation between Fortinet and OppFi is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fortinet and OppFi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OppFi Inc and Fortinet 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 Fortinet 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 Fortinet i.e., Fortinet and OppFi go up and down completely randomly.
Pair Corralation between Fortinet and OppFi
Given the investment horizon of 90 days Fortinet is expected to generate 2.9 times less return on investment than OppFi. But when comparing it to its historical volatility, Fortinet is 1.98 times less risky than OppFi. It trades about 0.08 of its potential returns per unit of risk. OppFi Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 230.00 in OppFi Inc on September 4, 2024 and sell it today you would earn a total of 586.00 from holding OppFi Inc or generate 254.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.66% |
| Values | Daily Returns |
Fortinet vs. OppFi Inc
Performance |
| Timeline |
| Fortinet |
| OppFi Inc |
Fortinet and OppFi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortinet and OppFi
The main advantage of trading using opposite Fortinet and OppFi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortinet 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.| Fortinet vs. Palo Alto Networks | Fortinet vs. Uipath Inc | Fortinet vs. Block Inc | Fortinet vs. Adobe Systems Incorporated |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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