Correlation Between OppFi and Reliq Health
Can any of the company-specific risk be diversified away by investing in both OppFi and Reliq Health 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 Reliq Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OppFi Inc and Reliq Health Technologies, you can compare the effects of market volatilities on OppFi and Reliq Health 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 Reliq Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of OppFi and Reliq Health.
Diversification Opportunities for OppFi and Reliq Health
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OppFi and Reliq is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding OppFi Inc and Reliq Health Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliq Health Technologies 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 Reliq Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliq Health Technologies has no effect on the direction of OppFi i.e., OppFi and Reliq Health go up and down completely randomly.
Pair Corralation between OppFi and Reliq Health
Given the investment horizon of 90 days OppFi is expected to generate 24.07 times less return on investment than Reliq Health. But when comparing it to its historical volatility, OppFi Inc is 30.58 times less risky than Reliq Health. It trades about 0.19 of its potential returns per unit of risk. Reliq Health Technologies is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Reliq Health Technologies on September 12, 2024 and sell it today you would lose (3.99) from holding Reliq Health Technologies or give up 99.75% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
OppFi Inc vs. Reliq Health Technologies
Performance |
Timeline |
OppFi Inc |
Reliq Health Technologies |
OppFi and Reliq Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OppFi and Reliq Health
The main advantage of trading using opposite OppFi and Reliq Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OppFi position performs unexpectedly, Reliq Health 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 Reliq Health will offset losses from the drop in Reliq Health's long position.The idea behind OppFi Inc and Reliq Health Technologies 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.Reliq Health vs. Achiko AG | Reliq Health vs. NetraMark Holdings | Reliq Health vs. EGF Theramed Health | Reliq Health vs. Mitesco |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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