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

Service Team  OppFi

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

If you would invest  433.00  in OppFi Inc on September 13, 2024 and sell it today you would earn a total of  251.00  from holding OppFi Inc or generate 57.97% 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

Service Team

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Service Team has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Service Team is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

OppFi Inc

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in OppFi Inc are ranked lower than 14 (%) 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 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.

The idea behind Service Team 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.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.