Correlation Between ProtoSource and Veea

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

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

Diversification Opportunities for ProtoSource and Veea

-0.59

Correlation Coefficient

ProtoSource  Veea

Excellent diversification

The 3 months correlation between ProtoSource and Veea is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding ProtoSource and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc and ProtoSource 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 ProtoSource 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 ProtoSource i.e., ProtoSource and Veea go up and down completely randomly.

Pair Corralation between ProtoSource and Veea

If you would invest  9.99  in Veea Inc on September 13, 2024 and sell it today you would earn a total of  4.51  from holding Veea Inc or generate 45.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.92%
Values	Daily Returns

ProtoSource  vs.  Veea Inc

ProtoSource

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ProtoSource has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, ProtoSource is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Veea Inc

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Veea Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Veea showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ProtoSource and Veea

The main advantage of trading using opposite ProtoSource and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProtoSource 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 ProtoSource 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.