Correlation Between Oi SA and Guess

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Oi SA and Guess 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 Oi SA and Guess into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oi SA ADR and Guess Inc, you can compare the effects of market volatilities on Oi SA and Guess 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 Oi SA with a short position of Guess. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oi SA and Guess.

Diversification Opportunities for Oi SA and Guess

0.23
  Correlation Coefficient

Modest diversification

The 3 months correlation between OIBRQ and Guess is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Oi SA ADR and Guess Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guess Inc and Oi SA 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 Oi SA ADR are associated (or correlated) with Guess. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guess Inc has no effect on the direction of Oi SA i.e., Oi SA and Guess go up and down completely randomly.

Pair Corralation between Oi SA and Guess

If you would invest  1.06  in Oi SA ADR on January 25, 2024 and sell it today you would earn a total of  0.00  from holding Oi SA ADR or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy4.55%
ValuesDaily Returns

Oi SA ADR  vs.  Guess Inc

 Performance 
       Timeline  
Oi SA ADR 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Oi SA ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Oi SA is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.
Guess Inc 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Guess Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical and fundamental indicators, Guess unveiled solid returns over the last few months and may actually be approaching a breakup point.

Oi SA and Guess Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oi SA and Guess

The main advantage of trading using opposite Oi SA and Guess positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oi SA position performs unexpectedly, Guess 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 Guess will offset losses from the drop in Guess' long position.
The idea behind Oi SA ADR and Guess 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Other Complementary Tools

FinTech Suite
Use AI to screen and filter profitable investment opportunities
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Money Managers
Screen money managers from public funds and ETFs managed around the world
Global Correlations
Find global opportunities by holding instruments from different markets
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules