Correlation Between OppFi and PACIFIC
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By analyzing existing cross correlation between OppFi Inc and PACIFIC GAS ELECTRIC, you can compare the effects of market volatilities on OppFi and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of OppFi and PACIFIC.
Diversification Opportunities for OppFi and PACIFIC
Pay attention - limited upside
The 3 months correlation between OppFi and PACIFIC is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding OppFi Inc and PACIFIC GAS ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS ELECTRIC 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS ELECTRIC has no effect on the direction of OppFi i.e., OppFi and PACIFIC go up and down completely randomly.
Pair Corralation between OppFi and PACIFIC
Given the investment horizon of 90 days OppFi Inc is expected to generate 4.6 times more return on investment than PACIFIC. However, OppFi is 4.6 times more volatile than PACIFIC GAS ELECTRIC. It trades about 0.49 of its potential returns per unit of risk. PACIFIC GAS ELECTRIC is currently generating about -0.08 per unit of risk. If you would invest 485.00 in OppFi Inc on September 4, 2024 and sell it today you would earn a total of 331.00 from holding OppFi Inc or generate 68.25% 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. PACIFIC GAS ELECTRIC
Performance |
| Timeline |
| OppFi Inc |
| PACIFIC GAS ELECTRIC |
OppFi and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OppFi and PACIFIC
The main advantage of trading using opposite OppFi and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OppFi position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's long position.The idea behind OppFi Inc and PACIFIC GAS ELECTRIC 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.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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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