Correlation Between Coda Octopus and Veea

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

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

Diversification Opportunities for Coda Octopus and Veea

0.73

Correlation Coefficient

Coda Octopus  Veea

Poor diversification

The 3 months correlation between Coda and Veea is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Coda Octopus Group and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc and Coda Octopus 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 Coda Octopus Group 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 Coda Octopus i.e., Coda Octopus and Veea go up and down completely randomly.

Pair Corralation between Coda Octopus and Veea

Given the investment horizon of 90 days Coda Octopus Group is expected to under-perform the Veea. But the stock apears to be less risky and, when comparing its historical volatility, Coda Octopus Group is 6.02 times less risky than Veea. The stock trades about -0.18 of its potential returns per unit of risk. The Veea Inc is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  13.00  in Veea Inc on December 26, 2024 and sell it today you would lose (4.76) from holding Veea Inc or give up 36.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	65.57%
Values	Daily Returns

Coda Octopus Group  vs.  Veea Inc

Coda Octopus Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Coda Octopus Group 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 fundamental indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Veea Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Veea Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Coda Octopus and Veea

The main advantage of trading using opposite Coda Octopus and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coda Octopus 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 Coda Octopus Group 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 Commodity Directory module to find actively traded commodities issued by global exchanges.