Correlation Between Stifel Financial and OppFi
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and OppFi 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 Stifel Financial and OppFi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and OppFi Inc, you can compare the effects of market volatilities on Stifel Financial and OppFi 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 Stifel Financial with a short position of OppFi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and OppFi.
Diversification Opportunities for Stifel Financial and OppFi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Stifel and OppFi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and OppFi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OppFi Inc and Stifel Financial 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 Stifel Financial are associated (or correlated) with OppFi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OppFi Inc has no effect on the direction of Stifel Financial i.e., Stifel Financial and OppFi go up and down completely randomly.
Pair Corralation between Stifel Financial and OppFi
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 2.27 times less return on investment than OppFi. But when comparing it to its historical volatility, Stifel Financial is 2.33 times less risky than OppFi. It trades about 0.16 of its potential returns per unit of risk. OppFi Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 336.00 in OppFi Inc on August 24, 2024 and sell it today you would earn a total of 386.00 from holding OppFi Inc or generate 114.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial vs. OppFi Inc
Performance |
| Timeline |
| Stifel Financial |
| OppFi Inc |
Stifel Financial and OppFi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and OppFi
The main advantage of trading using opposite Stifel Financial and OppFi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, OppFi 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 OppFi will offset losses from the drop in OppFi's long position.| Stifel Financial vs. SCOR PK | Stifel Financial vs. Aquagold International | Stifel Financial vs. Small Cap Core | Stifel Financial vs. Morningstar Unconstrained Allocation |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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