Correlation Between OppFi and Ivanhoe Mines
Can any of the company-specific risk be diversified away by investing in both OppFi and Ivanhoe Mines 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 Ivanhoe Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OppFi Inc and Ivanhoe Mines, you can compare the effects of market volatilities on OppFi and Ivanhoe Mines 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 Ivanhoe Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of OppFi and Ivanhoe Mines.
Diversification Opportunities for OppFi and Ivanhoe Mines
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OppFi and Ivanhoe is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding OppFi Inc and Ivanhoe Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Mines 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 Ivanhoe Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivanhoe Mines has no effect on the direction of OppFi i.e., OppFi and Ivanhoe Mines go up and down completely randomly.
Pair Corralation between OppFi and Ivanhoe Mines
Given the investment horizon of 90 days OppFi Inc is expected to generate 3.13 times more return on investment than Ivanhoe Mines. However, OppFi is 3.13 times more volatile than Ivanhoe Mines. It trades about 0.44 of its potential returns per unit of risk. Ivanhoe Mines is currently generating about -0.15 per unit of risk. If you would invest 808.00 in OppFi Inc on November 2, 2024 and sell it today you would earn a total of 573.00 from holding OppFi Inc or generate 70.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OppFi Inc vs. Ivanhoe Mines
Performance |
| Timeline |
| OppFi Inc |
| Ivanhoe Mines |
OppFi and Ivanhoe Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OppFi and Ivanhoe Mines
The main advantage of trading using opposite OppFi and Ivanhoe Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OppFi position performs unexpectedly, Ivanhoe Mines 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 Ivanhoe Mines will offset losses from the drop in Ivanhoe Mines' long position.The idea behind OppFi Inc and Ivanhoe Mines 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.| Ivanhoe Mines vs. Fury Gold Mines | Ivanhoe Mines vs. EMX Royalty Corp | Ivanhoe Mines vs. Western Copper and | Ivanhoe Mines vs. Nevada King Gold |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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