Correlation Between PowerUp Acquisition and Oportun Financial
Can any of the company-specific risk be diversified away by investing in both PowerUp Acquisition and Oportun Financial 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 PowerUp Acquisition and Oportun Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PowerUp Acquisition Corp and Oportun Financial Corp, you can compare the effects of market volatilities on PowerUp Acquisition and Oportun Financial 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 PowerUp Acquisition with a short position of Oportun Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PowerUp Acquisition and Oportun Financial.
Diversification Opportunities for PowerUp Acquisition and Oportun Financial
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PowerUp and Oportun is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding PowerUp Acquisition Corp and Oportun Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oportun Financial Corp and PowerUp Acquisition 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 PowerUp Acquisition Corp are associated (or correlated) with Oportun Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oportun Financial Corp has no effect on the direction of PowerUp Acquisition i.e., PowerUp Acquisition and Oportun Financial go up and down completely randomly.
Pair Corralation between PowerUp Acquisition and Oportun Financial
Assuming the 90 days horizon PowerUp Acquisition is expected to generate 24.29 times less return on investment than Oportun Financial. In addition to that, PowerUp Acquisition is 4.01 times more volatile than Oportun Financial Corp. It trades about 0.0 of its total potential returns per unit of risk. Oportun Financial Corp is currently generating about 0.45 per unit of volatility. If you would invest 259.00 in Oportun Financial Corp on August 30, 2024 and sell it today you would earn a total of 136.00 from holding Oportun Financial Corp or generate 52.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 65.22% |
| Values | Daily Returns |
PowerUp Acquisition Corp vs. Oportun Financial Corp
Performance |
| Timeline |
| PowerUp Acquisition Corp |
| Oportun Financial Corp |
PowerUp Acquisition and Oportun Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PowerUp Acquisition and Oportun Financial
The main advantage of trading using opposite PowerUp Acquisition and Oportun Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PowerUp Acquisition position performs unexpectedly, Oportun Financial 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 Oportun Financial will offset losses from the drop in Oportun Financial's long position.| PowerUp Acquisition vs. ClimateRock Class A | PowerUp Acquisition vs. CF Acquisition VII | PowerUp Acquisition vs. DP Cap Acquisition |
| Oportun Financial vs. 360 Finance | Oportun Financial vs. Atlanticus Holdings | Oportun Financial vs. X Financial Class | Oportun Financial vs. Yirendai |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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