Correlation Between OppFi and Affiliated Resources
Can any of the company-specific risk be diversified away by investing in both OppFi and Affiliated Resources 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 OppFi and Affiliated Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OppFi Inc and Affiliated Resources Corp, you can compare the effects of market volatilities on OppFi and Affiliated Resources 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 OppFi with a short position of Affiliated Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of OppFi and Affiliated Resources.
Diversification Opportunities for OppFi and Affiliated Resources
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OppFi and Affiliated is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding OppFi Inc and Affiliated Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affiliated Resources Corp and OppFi 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 OppFi Inc are associated (or correlated) with Affiliated Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affiliated Resources Corp has no effect on the direction of OppFi i.e., OppFi and Affiliated Resources go up and down completely randomly.
Pair Corralation between OppFi and Affiliated Resources
Given the investment horizon of 90 days OppFi is expected to generate 1.75 times less return on investment than Affiliated Resources. But when comparing it to its historical volatility, OppFi Inc is 2.93 times less risky than Affiliated Resources. It trades about 0.19 of its potential returns per unit of risk. Affiliated Resources Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2.69 in Affiliated Resources Corp on September 3, 2024 and sell it today you would earn a total of 5.51 from holding Affiliated Resources Corp or generate 204.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.32% |
| Values | Daily Returns |
OppFi Inc vs. Affiliated Resources Corp
Performance |
| Timeline |
| OppFi Inc |
| Affiliated Resources Corp |
OppFi and Affiliated Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OppFi and Affiliated Resources
The main advantage of trading using opposite OppFi and Affiliated Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OppFi position performs unexpectedly, Affiliated Resources 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 Affiliated Resources will offset losses from the drop in Affiliated Resources' long position.| OppFi vs. Highway Holdings Limited | OppFi vs. QCR Holdings | OppFi vs. Partner Communications | OppFi vs. Acumen Pharmaceuticals |
| Affiliated Resources vs. OppFi Inc | Affiliated Resources vs. Fortinet | Affiliated Resources vs. Brera Holdings PLC | Affiliated Resources vs. MetLife |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |