Correlation Between OppFi and Beijing Gas
Can any of the company-specific risk be diversified away by investing in both OppFi and Beijing Gas 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 Beijing Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OppFi Inc and Beijing Gas Blue, you can compare the effects of market volatilities on OppFi and Beijing Gas 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 Beijing Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of OppFi and Beijing Gas.
Diversification Opportunities for OppFi and Beijing Gas
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between OppFi and Beijing is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding OppFi Inc and Beijing Gas Blue in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Gas Blue 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 Beijing Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Gas Blue has no effect on the direction of OppFi i.e., OppFi and Beijing Gas go up and down completely randomly.
Pair Corralation between OppFi and Beijing Gas
Given the investment horizon of 90 days OppFi Inc is expected to generate 0.31 times more return on investment than Beijing Gas. However, OppFi Inc is 3.27 times less risky than Beijing Gas. It trades about 0.39 of its potential returns per unit of risk. Beijing Gas Blue is currently generating about -0.22 per unit of risk. If you would invest 485.00 in OppFi Inc on September 5, 2024 and sell it today you would earn a total of 283.00 from holding OppFi Inc or generate 58.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
OppFi Inc vs. Beijing Gas Blue
Performance |
| Timeline |
| OppFi Inc |
| Beijing Gas Blue |
OppFi and Beijing Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OppFi and Beijing Gas
The main advantage of trading using opposite OppFi and Beijing Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OppFi position performs unexpectedly, Beijing Gas 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 Beijing Gas will offset losses from the drop in Beijing Gas' long position.The idea behind OppFi Inc and Beijing Gas Blue pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Beijing Gas vs. ENN Energy Holdings | Beijing Gas vs. EverGen Infrastructure Corp | Beijing Gas vs. OPAL Fuels | Beijing Gas vs. Atmos Energy |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |