Correlation Between Veea and Oppenheimer Strategic

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

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

Diversification Opportunities for Veea and Oppenheimer Strategic

0.7

Correlation Coefficient

Veea  Oppenheimer Strategic

Poor diversification

The 3 months correlation between Veea and Oppenheimer is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Veea Inc and Oppenheimer Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Strategic 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 Oppenheimer Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Strategic has no effect on the direction of Veea i.e., Veea and Oppenheimer Strategic go up and down completely randomly.

Pair Corralation between Veea and Oppenheimer Strategic

Given the investment horizon of 90 days Veea Inc is expected to under-perform the Oppenheimer Strategic. In addition to that, Veea is 19.95 times more volatile than Oppenheimer Strategic Income. It trades about -0.11 of its total potential returns per unit of risk. Oppenheimer Strategic Income is currently generating about 0.22 per unit of volatility. If you would invest  306.00  in Oppenheimer Strategic Income on September 2, 2024 and sell it today you would earn a total of  4.00  from holding Oppenheimer Strategic Income or generate 1.31% return on investment over 90 days.

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

Veea Inc  vs.  Oppenheimer Strategic Income

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 uncertain 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.

Oppenheimer Strategic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oppenheimer Strategic Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Oppenheimer Strategic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Veea and Oppenheimer Strategic

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

The idea behind Veea Inc and Oppenheimer Strategic Income 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.