Correlation Between OppFi and EverGen Infrastructure
Can any of the company-specific risk be diversified away by investing in both OppFi and EverGen Infrastructure 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 EverGen Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OppFi Inc and EverGen Infrastructure Corp, you can compare the effects of market volatilities on OppFi and EverGen Infrastructure 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 EverGen Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of OppFi and EverGen Infrastructure.
Diversification Opportunities for OppFi and EverGen Infrastructure
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OppFi and EverGen is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding OppFi Inc and EverGen Infrastructure Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EverGen Infrastructure 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 EverGen Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EverGen Infrastructure has no effect on the direction of OppFi i.e., OppFi and EverGen Infrastructure go up and down completely randomly.
Pair Corralation between OppFi and EverGen Infrastructure
Given the investment horizon of 90 days OppFi Inc is expected to generate 1.96 times more return on investment than EverGen Infrastructure. However, OppFi is 1.96 times more volatile than EverGen Infrastructure Corp. It trades about 0.07 of its potential returns per unit of risk. EverGen Infrastructure Corp is currently generating about -0.02 per unit of risk. If you would invest 406.00 in OppFi Inc on September 12, 2024 and sell it today you would earn a total of 278.00 from holding OppFi Inc or generate 68.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OppFi Inc vs. EverGen Infrastructure Corp
Performance |
| Timeline |
| OppFi Inc |
| EverGen Infrastructure |
OppFi and EverGen Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OppFi and EverGen Infrastructure
The main advantage of trading using opposite OppFi and EverGen Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OppFi position performs unexpectedly, EverGen Infrastructure 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 EverGen Infrastructure will offset losses from the drop in EverGen Infrastructure's long position.The idea behind OppFi Inc and EverGen Infrastructure Corp 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.| EverGen Infrastructure vs. Beijing Gas Blue | EverGen Infrastructure vs. OPAL Fuels | EverGen Infrastructure vs. ENN Energy Holdings | EverGen Infrastructure vs. APA Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |