Correlation Between OppFi and Mainstreet Equity
Can any of the company-specific risk be diversified away by investing in both OppFi and Mainstreet Equity 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 Mainstreet Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OppFi Inc and Mainstreet Equity Corp, you can compare the effects of market volatilities on OppFi and Mainstreet Equity 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 Mainstreet Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of OppFi and Mainstreet Equity.
Diversification Opportunities for OppFi and Mainstreet Equity
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OppFi and Mainstreet is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding OppFi Inc and Mainstreet Equity Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstreet Equity 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 Mainstreet Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstreet Equity Corp has no effect on the direction of OppFi i.e., OppFi and Mainstreet Equity go up and down completely randomly.
Pair Corralation between OppFi and Mainstreet Equity
Given the investment horizon of 90 days OppFi Inc is expected to generate 4.29 times more return on investment than Mainstreet Equity. However, OppFi is 4.29 times more volatile than Mainstreet Equity Corp. It trades about 0.41 of its potential returns per unit of risk. Mainstreet Equity Corp is currently generating about 0.01 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. Mainstreet Equity Corp
Performance |
| Timeline |
| OppFi Inc |
| Mainstreet Equity Corp |
OppFi and Mainstreet Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OppFi and Mainstreet Equity
The main advantage of trading using opposite OppFi and Mainstreet Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OppFi position performs unexpectedly, Mainstreet Equity 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 Mainstreet Equity will offset losses from the drop in Mainstreet Equity's long position.The idea behind OppFi Inc and Mainstreet Equity 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.| Mainstreet Equity vs. Aroundtown SA | Mainstreet Equity vs. Maui Land Pineapple | Mainstreet Equity vs. New York City | Mainstreet Equity vs. Frp Holdings Ord |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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