Correlation Between Veea and Global Engine

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

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

Diversification Opportunities for Veea and Global Engine

0.06

Correlation Coefficient

Veea  Global Engine

Significant diversification

The 3 months correlation between Veea and Global is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Veea Inc and Global Engine Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Engine Group and Veea 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 Veea Inc are associated (or correlated) with Global Engine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Engine Group has no effect on the direction of Veea i.e., Veea and Global Engine go up and down completely randomly.

Pair Corralation between Veea and Global Engine

Given the investment horizon of 90 days Veea Inc is expected to under-perform the Global Engine. But the stock apears to be less risky and, when comparing its historical volatility, Veea Inc is 1.54 times less risky than Global Engine. The stock trades about -0.22 of its potential returns per unit of risk. The Global Engine Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  150.00  in Global Engine Group on December 26, 2024 and sell it today you would earn a total of  22.00  from holding Global Engine Group or generate 14.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Veea Inc  vs.  Global Engine Group

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. Despite weak performance in the last few months, the Stock's technical and 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.

Global Engine Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Global Engine Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile essential indicators, Global Engine exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Veea and Global Engine

The main advantage of trading using opposite Veea and Global Engine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veea position performs unexpectedly, Global Engine 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 Global Engine will offset losses from the drop in Global Engine's long position.

The idea behind Veea Inc and Global Engine Group 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.