Correlation Between Technology Munications and Veea

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

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

Diversification Opportunities for Technology Munications and Veea

-0.31

Correlation Coefficient

Technology Munications  Veea

Very good diversification

The 3 months correlation between Technology and Veea is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Technology Munications Portfol and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc and Technology Munications 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 Technology Munications Portfolio 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 Technology Munications i.e., Technology Munications and Veea go up and down completely randomly.

Pair Corralation between Technology Munications and Veea

Assuming the 90 days horizon Technology Munications Portfolio is expected to generate 0.05 times more return on investment than Veea. However, Technology Munications Portfolio is 20.24 times less risky than Veea. It trades about 0.19 of its potential returns per unit of risk. Veea Inc is currently generating about -0.05 per unit of risk. If you would invest  2,633  in Technology Munications Portfolio on September 5, 2024 and sell it today you would earn a total of  332.00  from holding Technology Munications Portfolio or generate 12.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	92.19%
Values	Daily Returns

Technology Munications Portfol  vs.  Veea Inc

Technology Munications

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Technology Munications Portfolio are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Technology Munications may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 unfluctuating 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 Technology Munications and Veea

The main advantage of trading using opposite Technology Munications and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technology Munications 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 Technology Munications Portfolio 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.