Correlation Between Lufax Holding and Oportun Financial
Can any of the company-specific risk be diversified away by investing in both Lufax Holding and Oportun Financial 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 Lufax Holding and Oportun Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lufax Holding and Oportun Financial Corp, you can compare the effects of market volatilities on Lufax Holding and Oportun Financial 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 Lufax Holding with a short position of Oportun Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lufax Holding and Oportun Financial.
Diversification Opportunities for Lufax Holding and Oportun Financial
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lufax and Oportun is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Lufax Holding and Oportun Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oportun Financial Corp and Lufax Holding 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 Lufax Holding are associated (or correlated) with Oportun Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oportun Financial Corp has no effect on the direction of Lufax Holding i.e., Lufax Holding and Oportun Financial go up and down completely randomly.
Pair Corralation between Lufax Holding and Oportun Financial
Allowing for the 90-day total investment horizon Lufax Holding is expected to generate 2.55 times less return on investment than Oportun Financial. But when comparing it to its historical volatility, Lufax Holding is 1.12 times less risky than Oportun Financial. It trades about 0.01 of its potential returns per unit of risk. Oportun Financial Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 548.00 in Oportun Financial Corp on August 30, 2024 and sell it today you would lose (153.00) from holding Oportun Financial Corp or give up 27.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lufax Holding vs. Oportun Financial Corp
Performance |
| Timeline |
| Lufax Holding |
| Oportun Financial Corp |
Lufax Holding and Oportun Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lufax Holding and Oportun Financial
The main advantage of trading using opposite Lufax Holding and Oportun Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lufax Holding position performs unexpectedly, Oportun Financial 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 Oportun Financial will offset losses from the drop in Oportun Financial's long position.| Lufax Holding vs. 360 Finance | Lufax Holding vs. Atlanticus Holdings | Lufax Holding vs. X Financial Class | Lufax Holding vs. Yirendai |
| Oportun Financial vs. 360 Finance | Oportun Financial vs. Atlanticus Holdings | Oportun Financial vs. X Financial Class | Oportun Financial vs. Yirendai |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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