Correlation Between Service Team and OppFi
Can any of the company-specific risk be diversified away by investing in both Service Team 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 Service Team and OppFi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Service Team and OppFi Inc, you can compare the effects of market volatilities on Service Team 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 Service Team with a short position of OppFi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Service Team and OppFi.
Diversification Opportunities for Service Team and OppFi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Service and OppFi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Service Team and OppFi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OppFi Inc and Service Team 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 Service Team 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 Service Team i.e., Service Team and OppFi go up and down completely randomly.
Pair Corralation between Service Team and OppFi
Given the investment horizon of 90 days Service Team is expected to under-perform the OppFi. In addition to that, Service Team is 1.14 times more volatile than OppFi Inc. It trades about -0.05 of its total potential returns per unit of risk. OppFi Inc is currently generating about 0.09 per unit of volatility. If you would invest 205.00 in OppFi Inc on September 12, 2024 and sell it today you would earn a total of 480.00 from holding OppFi Inc or generate 234.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Service Team vs. OppFi Inc
Performance |
| Timeline |
| Service Team |
| OppFi Inc |
Service Team and OppFi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Service Team and OppFi
The main advantage of trading using opposite Service Team and OppFi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Service Team 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.| Service Team vs. American Axle Manufacturing | Service Team vs. Modine Manufacturing | Service Team vs. Aeye Inc | Service Team vs. Marketing Worldwide |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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