Correlation Between OppFi and Fortitude Gold
Can any of the company-specific risk be diversified away by investing in both OppFi and Fortitude Gold 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 Fortitude Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OppFi Inc and Fortitude Gold Corp, you can compare the effects of market volatilities on OppFi and Fortitude Gold 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 Fortitude Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of OppFi and Fortitude Gold.
Diversification Opportunities for OppFi and Fortitude Gold
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OppFi and Fortitude is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding OppFi Inc and Fortitude Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortitude Gold 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 Fortitude Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortitude Gold Corp has no effect on the direction of OppFi i.e., OppFi and Fortitude Gold go up and down completely randomly.
Pair Corralation between OppFi and Fortitude Gold
Given the investment horizon of 90 days OppFi Inc is expected to generate 2.7 times more return on investment than Fortitude Gold. However, OppFi is 2.7 times more volatile than Fortitude Gold Corp. It trades about 0.23 of its potential returns per unit of risk. Fortitude Gold Corp is currently generating about 0.11 per unit of risk. If you would invest 473.00 in OppFi Inc on November 2, 2024 and sell it today you would earn a total of 908.00 from holding OppFi Inc or generate 191.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OppFi Inc vs. Fortitude Gold Corp
Performance |
| Timeline |
| OppFi Inc |
| Fortitude Gold Corp |
OppFi and Fortitude Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OppFi and Fortitude Gold
The main advantage of trading using opposite OppFi and Fortitude Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OppFi position performs unexpectedly, Fortitude Gold 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 Fortitude Gold will offset losses from the drop in Fortitude Gold's long position.The idea behind OppFi Inc and Fortitude Gold 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.| Fortitude Gold vs. Generationome Properties | Fortitude Gold vs. Gold Resource | Fortitude Gold vs. PermRock Royalty Trust | Fortitude Gold vs. Ellington Residential Mortgage |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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