Correlation Between Open Lending and Figs
Can any of the company-specific risk be diversified away by investing in both Open Lending and Figs 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 Open Lending and Figs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Open Lending Corp and Figs Inc, you can compare the effects of market volatilities on Open Lending and Figs 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 Open Lending with a short position of Figs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Open Lending and Figs.
Diversification Opportunities for Open Lending and Figs
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Open and Figs is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Open Lending Corp and Figs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figs Inc and Open Lending 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 Open Lending Corp are associated (or correlated) with Figs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Figs Inc has no effect on the direction of Open Lending i.e., Open Lending and Figs go up and down completely randomly.
Pair Corralation between Open Lending and Figs
Given the investment horizon of 90 days Open Lending Corp is expected to generate 0.66 times more return on investment than Figs. However, Open Lending Corp is 1.51 times less risky than Figs. It trades about 0.16 of its potential returns per unit of risk. Figs Inc is currently generating about -0.14 per unit of risk. If you would invest 547.00 in Open Lending Corp on August 24, 2024 and sell it today you would earn a total of 76.00 from holding Open Lending Corp or generate 13.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Open Lending Corp vs. Figs Inc
Performance |
| Timeline |
| Open Lending Corp |
| Figs Inc |
Open Lending and Figs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Open Lending and Figs
The main advantage of trading using opposite Open Lending and Figs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Open Lending position performs unexpectedly, Figs 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 Figs will offset losses from the drop in Figs' long position.| Open Lending vs. EZCORP Inc | Open Lending vs. Orix Corp Ads | Open Lending vs. SLM Corp | Open Lending vs. Navient Corp |
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.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |