If a stock is a 1 star, does that mean that the OVI correlates with the stock 20% of the time, and if its’ 2 star, it correlates 40% of the time etc?
The stars are relative to each other.
5* means that for the latest period under examination (and the periods are not short term) a particular stock is in the top quantile of stocks that correlate with their own OVIs on an empirical basis.
The correlation stats are calculated on a rolling basis, updated every day.
It is a slow moving indicator that was originally intended for automated funds, and to deliberately minimize "market noise".
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