Correlation Between Medallion Financial and Oportun Financial
Can any of the company-specific risk be diversified away by investing in both Medallion Financial 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 Medallion Financial and Oportun Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medallion Financial Corp and Oportun Financial Corp, you can compare the effects of market volatilities on Medallion Financial 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 Medallion Financial with a short position of Oportun Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medallion Financial and Oportun Financial.
Diversification Opportunities for Medallion Financial and Oportun Financial
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Medallion and Oportun is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Medallion Financial Corp 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 Medallion Financial 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 Medallion Financial Corp 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 Medallion Financial i.e., Medallion Financial and Oportun Financial go up and down completely randomly.
Pair Corralation between Medallion Financial and Oportun Financial
Given the investment horizon of 90 days Medallion Financial is expected to generate 6.66 times less return on investment than Oportun Financial. But when comparing it to its historical volatility, Medallion Financial Corp is 2.01 times less risky than Oportun Financial. It trades about 0.05 of its potential returns per unit of risk. Oportun Financial Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 269.00 in Oportun Financial Corp on October 24, 2024 and sell it today you would earn a total of 102.00 from holding Oportun Financial Corp or generate 37.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medallion Financial Corp vs. Oportun Financial Corp
Performance |
| Timeline |
| Medallion Financial Corp |
| Oportun Financial Corp |
Medallion Financial and Oportun Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medallion Financial and Oportun Financial
The main advantage of trading using opposite Medallion Financial and Oportun Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medallion Financial 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.| Medallion Financial vs. Midland States Bancorp | Medallion Financial vs. Western New England | Medallion Financial vs. Merchants Bancorp | Medallion Financial vs. MidWestOne Financial Group |
| Oportun Financial vs. SLM Corp | Oportun Financial vs. Orix Corp Ads | Oportun Financial vs. FirstCash | Oportun Financial vs. Medallion Financial 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |