Correlation Between OppFi and Delta Galil
Can any of the company-specific risk be diversified away by investing in both OppFi and Delta Galil 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 Delta Galil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OppFi Inc and Delta Galil Industries, you can compare the effects of market volatilities on OppFi and Delta Galil 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 Delta Galil. Check out your portfolio center. Please also check ongoing floating volatility patterns of OppFi and Delta Galil.
Diversification Opportunities for OppFi and Delta Galil
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OppFi and Delta is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding OppFi Inc and Delta Galil Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Galil Industries 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 Delta Galil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Galil Industries has no effect on the direction of OppFi i.e., OppFi and Delta Galil go up and down completely randomly.
Pair Corralation between OppFi and Delta Galil
Given the investment horizon of 90 days OppFi Inc is expected to under-perform the Delta Galil. In addition to that, OppFi is 2.11 times more volatile than Delta Galil Industries. It trades about -0.15 of its total potential returns per unit of risk. Delta Galil Industries is currently generating about -0.3 per unit of volatility. If you would invest 5,700 in Delta Galil Industries on December 23, 2024 and sell it today you would lose (700.00) from holding Delta Galil Industries or give up 12.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OppFi Inc vs. Delta Galil Industries
Performance |
| Timeline |
| OppFi Inc |
| Delta Galil Industries |
OppFi and Delta Galil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OppFi and Delta Galil
The main advantage of trading using opposite OppFi and Delta Galil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OppFi position performs unexpectedly, Delta Galil 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 Delta Galil will offset losses from the drop in Delta Galil's long position.The idea behind OppFi Inc and Delta Galil Industries 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.| Delta Galil vs. Crocs Inc | Delta Galil vs. Hillman Solutions Corp | Delta Galil vs. Acme United | Delta Galil vs. Jerash Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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