Correlation Between Global Technology and Veea

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

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

Diversification Opportunities for Global Technology and Veea

-0.67

Correlation Coefficient

Global Technology  Veea

Excellent diversification

The 3 months correlation between Global and Veea is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Global Technology Portfolio and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc and Global Technology 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 Global Technology 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 Global Technology i.e., Global Technology and Veea go up and down completely randomly.

Pair Corralation between Global Technology and Veea

Assuming the 90 days horizon Global Technology is expected to generate 708.48 times less return on investment than Veea. But when comparing it to its historical volatility, Global Technology Portfolio is 6.86 times less risky than Veea. It trades about 0.0 of its potential returns per unit of risk. Veea Inc is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  252.00  in Veea Inc on September 23, 2024 and sell it today you would earn a total of  127.00  from holding Veea Inc or generate 50.4% return on investment over 90 days.

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

Global Technology Portfolio  vs.  Veea Inc

Global Technology

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Global Technology Portfolio are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Global Technology is not utilizing all of its potentials. The current 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 inconsistent 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 Global Technology and Veea

The main advantage of trading using opposite Global Technology and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Technology 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 Global Technology 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.