Correlation Between OppFi and Invivyd
Can any of the company-specific risk be diversified away by investing in both OppFi and Invivyd 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 Invivyd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OppFi Inc and Invivyd, you can compare the effects of market volatilities on OppFi and Invivyd 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 Invivyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of OppFi and Invivyd.
Diversification Opportunities for OppFi and Invivyd
Pay attention - limited upside
The 3 months correlation between OppFi and Invivyd is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding OppFi Inc and Invivyd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invivyd 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 Invivyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invivyd has no effect on the direction of OppFi i.e., OppFi and Invivyd go up and down completely randomly.
Pair Corralation between OppFi and Invivyd
Given the investment horizon of 90 days OppFi Inc is expected to generate 0.86 times more return on investment than Invivyd. However, OppFi Inc is 1.17 times less risky than Invivyd. It trades about 0.41 of its potential returns per unit of risk. Invivyd is currently generating about -0.09 per unit of risk. If you would invest 808.00 in OppFi Inc on November 3, 2024 and sell it today you would earn a total of 563.00 from holding OppFi Inc or generate 69.68% 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. Invivyd
Performance |
| Timeline |
| OppFi Inc |
| Invivyd |
OppFi and Invivyd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OppFi and Invivyd
The main advantage of trading using opposite OppFi and Invivyd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OppFi position performs unexpectedly, Invivyd 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 Invivyd will offset losses from the drop in Invivyd's long position.The idea behind OppFi Inc and Invivyd 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.| Invivyd vs. Recursion Pharmaceuticals | Invivyd vs. Atea Pharmaceuticals | Invivyd vs. Unity Biotechnology | Invivyd vs. Regenxbio |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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