Correlation Between Optiva and Zenvia

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

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

Diversification Opportunities for Optiva and Zenvia

0.36

Correlation Coefficient

Optiva  Zenvia

Weak diversification

The 3 months correlation between Optiva and Zenvia is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Optiva Inc and Zenvia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zenvia Inc and Optiva 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 Optiva Inc are associated (or correlated) with Zenvia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zenvia Inc has no effect on the direction of Optiva i.e., Optiva and Zenvia go up and down completely randomly.

Pair Corralation between Optiva and Zenvia

Assuming the 90 days horizon Optiva Inc is expected to under-perform the Zenvia. In addition to that, Optiva is 1.81 times more volatile than Zenvia Inc. It trades about -0.02 of its total potential returns per unit of risk. Zenvia Inc is currently generating about -0.02 per unit of volatility. If you would invest  216.00  in Zenvia Inc on December 29, 2024 and sell it today you would lose (39.00) from holding Zenvia Inc or give up 18.06% of portfolio value over 90 days.

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

Optiva Inc  vs.  Zenvia Inc

Optiva Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Optiva Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Zenvia Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zenvia Inc 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 stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Optiva and Zenvia

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

The idea behind Optiva Inc and Zenvia 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.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.