Correlation Between Penguin Solutions, and Veea

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

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

Diversification Opportunities for Penguin Solutions, and Veea

0.21

Correlation Coefficient

Penguin Solutions,  Veea

Modest diversification

The 3 months correlation between Penguin and Veea is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Penguin Solutions, and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc and Penguin Solutions, 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 Penguin Solutions, 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 Penguin Solutions, i.e., Penguin Solutions, and Veea go up and down completely randomly.

Pair Corralation between Penguin Solutions, and Veea

Given the investment horizon of 90 days Penguin Solutions, is expected to generate 0.24 times more return on investment than Veea. However, Penguin Solutions, is 4.13 times less risky than Veea. It trades about 0.01 of its potential returns per unit of risk. Veea Inc is currently generating about -0.08 per unit of risk. If you would invest  1,943  in Penguin Solutions, on December 22, 2024 and sell it today you would lose (27.00) from holding Penguin Solutions, or give up 1.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	65.0%
Values	Daily Returns

Penguin Solutions,  vs.  Veea Inc

Penguin Solutions,

Risk-Adjusted Performance

Very Weak

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

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 weak 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 Penguin Solutions, and Veea

The main advantage of trading using opposite Penguin Solutions, and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penguin Solutions, 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 Penguin Solutions, 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 CEOs Directory module to screen CEOs from public companies around the world.