Correlation Between Ainsworth Game and Veea

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

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

Diversification Opportunities for Ainsworth Game and Veea

0.46

Correlation Coefficient

Ainsworth Game  Veea

Very weak diversification

The 3 months correlation between Ainsworth and Veea is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc and Ainsworth Game 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 Ainsworth Game Technology 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 Ainsworth Game i.e., Ainsworth Game and Veea go up and down completely randomly.

Pair Corralation between Ainsworth Game and Veea

Assuming the 90 days horizon Ainsworth Game Technology is expected to under-perform the Veea. In addition to that, Ainsworth Game is 1.02 times more volatile than Veea Inc. It trades about -0.14 of its total potential returns per unit of risk. Veea Inc is currently generating about -0.02 per unit of volatility. If you would invest  378.00  in Veea Inc on October 22, 2024 and sell it today you would lose (12.00) from holding Veea Inc or give up 3.17% of portfolio value over 90 days.

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

Ainsworth Game Technology  vs.  Veea Inc

Ainsworth Game Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ainsworth Game Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ainsworth Game is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 somewhat strong technical and fundamental indicators, Veea is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ainsworth Game and Veea

The main advantage of trading using opposite Ainsworth Game and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game 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 Ainsworth Game Technology 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.