Correlation Between Singular Genomics and OppFi
Can any of the company-specific risk be diversified away by investing in both Singular Genomics 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 Singular Genomics and OppFi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singular Genomics Systems and OppFi Inc, you can compare the effects of market volatilities on Singular Genomics 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 Singular Genomics with a short position of OppFi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singular Genomics and OppFi.
Diversification Opportunities for Singular Genomics and OppFi
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Singular and OppFi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Singular Genomics Systems and OppFi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OppFi Inc and Singular Genomics 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 Singular Genomics Systems 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 Singular Genomics i.e., Singular Genomics and OppFi go up and down completely randomly.
Pair Corralation between Singular Genomics and OppFi
Given the investment horizon of 90 days Singular Genomics is expected to generate 6.1 times less return on investment than OppFi. In addition to that, Singular Genomics is 1.95 times more volatile than OppFi Inc. It trades about 0.01 of its total potential returns per unit of risk. OppFi Inc is currently generating about 0.08 per unit of volatility. If you would invest 225.00 in OppFi Inc on September 3, 2024 and sell it today you would earn a total of 591.00 from holding OppFi Inc or generate 262.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singular Genomics Systems vs. OppFi Inc
Performance |
| Timeline |
| Singular Genomics Systems |
| OppFi Inc |
Singular Genomics and OppFi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singular Genomics and OppFi
The main advantage of trading using opposite Singular Genomics and OppFi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singular Genomics 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.| Singular Genomics vs. InfuSystems Holdings | Singular Genomics vs. Pro Dex | Singular Genomics vs. LeMaitre Vascular | Singular Genomics vs. Utah Medical Products |
| OppFi vs. Highway Holdings Limited | OppFi vs. QCR Holdings | OppFi vs. Partner Communications | OppFi vs. Acumen Pharmaceuticals |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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