Correlation Between Baron Durable and Veea

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

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

Diversification Opportunities for Baron Durable and Veea

-0.58

Correlation Coefficient

Baron Durable  Veea

Excellent diversification

The 3 months correlation between Baron and Veea is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Baron Durable Advantage and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc and Baron Durable 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 Baron Durable Advantage are associated (or correlated) with Veea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veea Inc has no effect on the direction of Baron Durable i.e., Baron Durable and Veea go up and down completely randomly.

Pair Corralation between Baron Durable and Veea

Assuming the 90 days horizon Baron Durable Advantage is expected to generate 0.06 times more return on investment than Veea. However, Baron Durable Advantage is 18.03 times less risky than Veea. It trades about 0.13 of its potential returns per unit of risk. Veea Inc is currently generating about -0.02 per unit of risk. If you would invest  1,585  in Baron Durable Advantage on September 28, 2024 and sell it today you would earn a total of  1,325  from holding Baron Durable Advantage or generate 83.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	15.12%
Values	Daily Returns

Baron Durable Advantage  vs.  Veea Inc

Baron Durable Advantage

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Baron Durable Advantage are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Baron Durable is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Veea Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Veea 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 somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Baron Durable and Veea

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

The idea behind Baron Durable Advantage and Veea 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.