Correlation Between Veeva Systems and OneMedNet Corp

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

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

Diversification Opportunities for Veeva Systems and OneMedNet Corp

-0.54

Correlation Coefficient

Veeva Systems  OneMedNet Corp

Excellent diversification

The 3 months correlation between Veeva and OneMedNet is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Veeva Systems Class and OneMedNet Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneMedNet Corp and Veeva Systems 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 Veeva Systems Class are associated (or correlated) with OneMedNet Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneMedNet Corp has no effect on the direction of Veeva Systems i.e., Veeva Systems and OneMedNet Corp go up and down completely randomly.

Pair Corralation between Veeva Systems and OneMedNet Corp

Given the investment horizon of 90 days Veeva Systems is expected to generate 23.55 times less return on investment than OneMedNet Corp. But when comparing it to its historical volatility, Veeva Systems Class is 12.83 times less risky than OneMedNet Corp. It trades about 0.06 of its potential returns per unit of risk. OneMedNet Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  3.39  in OneMedNet Corp on September 24, 2024 and sell it today you would earn a total of  0.62  from holding OneMedNet Corp or generate 18.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	67.19%
Values	Daily Returns

Veeva Systems Class  vs.  OneMedNet Corp

Veeva Systems Class

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Veeva Systems Class are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, Veeva Systems may actually be approaching a critical reversion point that can send shares even higher in January 2025.

OneMedNet Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OneMedNet Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, OneMedNet Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Veeva Systems and OneMedNet Corp

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

The idea behind Veeva Systems Class and OneMedNet Corp 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.

Check out your portfolio center.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..