Correlation Between Hudson Acquisition and Veea

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

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

Diversification Opportunities for Hudson Acquisition and Veea

0.0

Correlation Coefficient

Hudson Acquisition  Veea

Pay attention - limited upside

The 3 months correlation between Hudson and Veea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Acquisition I and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc and Hudson Acquisition 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 Hudson Acquisition I 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 Hudson Acquisition i.e., Hudson Acquisition and Veea go up and down completely randomly.

Pair Corralation between Hudson Acquisition and Veea

If you would invest  319.00  in Veea Inc on October 9, 2024 and sell it today you would earn a total of  52.00  from holding Veea Inc or generate 16.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hudson Acquisition I  vs.  Veea Inc

Hudson Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hudson Acquisition I has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Hudson Acquisition is not utilizing all of its potentials. The latest 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 somewhat strong technical and fundamental indicators, Veea is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hudson Acquisition and Veea

The main advantage of trading using opposite Hudson Acquisition and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Acquisition 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 Hudson Acquisition I 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.