Correlation Between OppFi and Moncler SpA

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

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

Diversification Opportunities for OppFi and Moncler SpA

-0.74

Correlation Coefficient

OppFi  Moncler SpA

Pay attention - limited upside

The 3 months correlation between OppFi and Moncler is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding OppFi Inc and Moncler SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moncler SpA 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 Moncler SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moncler SpA has no effect on the direction of OppFi i.e., OppFi and Moncler SpA go up and down completely randomly.

Pair Corralation between OppFi and Moncler SpA

Given the investment horizon of 90 days OppFi Inc is expected to generate 1.56 times more return on investment than Moncler SpA. However, OppFi is 1.56 times more volatile than Moncler SpA. It trades about 0.23 of its potential returns per unit of risk. Moncler SpA is currently generating about -0.06 per unit of risk. If you would invest  422.00  in OppFi Inc on September 5, 2024 and sell it today you would earn a total of  346.00  from holding OppFi Inc or generate 81.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

OppFi Inc  vs.  Moncler SpA

OppFi Inc

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in OppFi Inc are ranked lower than 18 (%) 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.

Moncler SpA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Moncler SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with OppFi and Moncler SpA

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

The idea behind OppFi Inc and Moncler SpA 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.