Correlation Between OppFi and Regional Management

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

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

Diversification Opportunities for OppFi and Regional Management

-0.17

Correlation Coefficient

OppFi  Regional Management

Good diversification

The 3 months correlation between OppFi and Regional is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding OppFi Inc and Regional Management Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regional Management Corp 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 Regional Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regional Management Corp has no effect on the direction of OppFi i.e., OppFi and Regional Management go up and down completely randomly.

Pair Corralation between OppFi and Regional Management

Given the investment horizon of 90 days OppFi is expected to generate 1.98 times less return on investment than Regional Management. In addition to that, OppFi is 1.84 times more volatile than Regional Management Corp. It trades about 0.04 of its total potential returns per unit of risk. Regional Management Corp is currently generating about 0.15 per unit of volatility. If you would invest  2,814  in Regional Management Corp on May 6, 2025 and sell it today you would earn a total of  573.00  from holding Regional Management Corp or generate 20.36% return on investment over 90 days.

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

OppFi Inc  vs.  Regional Management Corp

OppFi Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in OppFi Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent technical and fundamental indicators, OppFi may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Regional Management Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Regional Management Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very weak primary indicators, Regional Management displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OppFi and Regional Management

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

The idea behind OppFi Inc and Regional Management Corp 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 Transaction History module to view history of all your transactions and understand their impact on performance.