Correlation Between OSX Brasil and Whirlpool

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

By analyzing existing cross correlation between OSX Brasil SA and Whirlpool SA, you can compare the effects of market volatilities on OSX Brasil and Whirlpool 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 OSX Brasil with a short position of Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSX Brasil and Whirlpool.

Diversification Opportunities for OSX Brasil and Whirlpool

0.34

Correlation Coefficient

OSX Brasil  Whirlpool

Weak diversification

The 3 months correlation between OSX and Whirlpool is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding OSX Brasil SA and Whirlpool SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool SA and OSX Brasil 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 OSX Brasil SA are associated (or correlated) with Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool SA has no effect on the direction of OSX Brasil i.e., OSX Brasil and Whirlpool go up and down completely randomly.

Pair Corralation between OSX Brasil and Whirlpool

Assuming the 90 days trading horizon OSX Brasil SA is expected to generate 1.82 times more return on investment than Whirlpool. However, OSX Brasil is 1.82 times more volatile than Whirlpool SA. It trades about -0.03 of its potential returns per unit of risk. Whirlpool SA is currently generating about -0.15 per unit of risk. If you would invest  359.00  in OSX Brasil SA on December 4, 2024 and sell it today you would lose (31.00) from holding OSX Brasil SA or give up 8.64% of portfolio value over 90 days.

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

OSX Brasil SA  vs.  Whirlpool SA

OSX Brasil SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days OSX Brasil SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Whirlpool SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Whirlpool SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with OSX Brasil and Whirlpool

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

The idea behind OSX Brasil SA and Whirlpool SA 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.