Correlation Between Agrify Corp and OppFi

Can any of the company-specific risk be diversified away by investing in both Agrify Corp 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 Agrify Corp and OppFi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Agrify Corp and OppFi Inc, you can compare the effects of market volatilities on Agrify Corp 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 Agrify Corp with a short position of OppFi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrify Corp and OppFi.

Diversification Opportunities for Agrify Corp and OppFi

-0.42

Correlation Coefficient

Agrify Corp  OppFi

Very good diversification

The 3 months correlation between Agrify and OppFi is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and OppFi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OppFi Inc and Agrify Corp 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 Agrify Corp 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 Agrify Corp i.e., Agrify Corp and OppFi go up and down completely randomly.

Pair Corralation between Agrify Corp and OppFi

Given the investment horizon of 90 days Agrify Corp is expected to under-perform the OppFi. In addition to that, Agrify Corp is 1.37 times more volatile than OppFi Inc. It trades about -0.09 of its total potential returns per unit of risk. OppFi Inc is currently generating about 0.12 per unit of volatility. If you would invest  790.00  in OppFi Inc on December 25, 2024 and sell it today you would earn a total of  303.00  from holding OppFi Inc or generate 38.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Agrify Corp  vs.  OppFi Inc

Agrify Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agrify Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

OppFi Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OppFi Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady technical and fundamental indicators, OppFi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agrify Corp and OppFi

The main advantage of trading using opposite Agrify Corp and OppFi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrify Corp 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.

The idea behind Agrify Corp and OppFi Inc 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.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.