Correlation Between OppFi and CEMEX SAB

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

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

Diversification Opportunities for OppFi and CEMEX SAB

-0.63

Correlation Coefficient

OppFi  CEMEX SAB

Excellent diversification

The 3 months correlation between OppFi and CEMEX is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding OppFi Inc and CEMEX SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEMEX SAB de and OppFi 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 OppFi Inc are associated (or correlated) with CEMEX SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEMEX SAB de has no effect on the direction of OppFi i.e., OppFi and CEMEX SAB go up and down completely randomly.

Pair Corralation between OppFi and CEMEX SAB

Given the investment horizon of 90 days OppFi Inc is expected to generate 1.32 times more return on investment than CEMEX SAB. However, OppFi is 1.32 times more volatile than CEMEX SAB de. It trades about 0.21 of its potential returns per unit of risk. CEMEX SAB de is currently generating about -0.09 per unit of risk. If you would invest  473.00  in OppFi Inc on September 3, 2024 and sell it today you would earn a total of  343.00  from holding OppFi Inc or generate 72.52% return on investment over 90 days.

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

OppFi Inc  vs.  CEMEX SAB de

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 unfluctuating technical and fundamental indicators, OppFi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

CEMEX SAB de

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CEMEX SAB de has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with OppFi and CEMEX SAB

The main advantage of trading using opposite OppFi and CEMEX SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OppFi position performs unexpectedly, CEMEX SAB 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 CEMEX SAB will offset losses from the drop in CEMEX SAB's long position.

The idea behind OppFi Inc and CEMEX SAB de 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.