Correlation Between Enlivex Therapeutics and OppFi

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

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

Diversification Opportunities for Enlivex Therapeutics and OppFi

-0.85

Correlation Coefficient

Enlivex Therapeutics  OppFi

Pay attention - limited upside

The 3 months correlation between Enlivex and OppFi is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Enlivex Therapeutics and OppFi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OppFi Inc and Enlivex Therapeutics 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 Enlivex Therapeutics 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 Enlivex Therapeutics i.e., Enlivex Therapeutics and OppFi go up and down completely randomly.

Pair Corralation between Enlivex Therapeutics and OppFi

Given the investment horizon of 90 days Enlivex Therapeutics is expected to under-perform the OppFi. In addition to that, Enlivex Therapeutics is 1.13 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 0.2 per unit of volatility. If you would invest  430.00  in OppFi Inc on September 15, 2024 and sell it today you would earn a total of  304.00  from holding OppFi Inc or generate 70.7% return on investment over 90 days.

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

Enlivex Therapeutics  vs.  OppFi Inc

Enlivex Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enlivex Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's essential indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

OppFi Inc

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in OppFi Inc are ranked lower than 16 (%) 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 Enlivex Therapeutics and OppFi

The main advantage of trading using opposite Enlivex Therapeutics and OppFi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enlivex Therapeutics 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 Enlivex Therapeutics 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.