Correlation Between Salient Investment and Veea
Can any of the company-specific risk be diversified away by investing in both Salient Investment 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 Salient Investment and Veea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salient Investment Grade and Veea Inc, you can compare the effects of market volatilities on Salient Investment 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 Salient Investment with a short position of Veea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salient Investment and Veea.
Diversification Opportunities for Salient Investment and Veea
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salient and Veea is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Salient Investment Grade and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc and Salient Investment 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 Salient Investment Grade 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 Salient Investment i.e., Salient Investment and Veea go up and down completely randomly.
Pair Corralation between Salient Investment and Veea
Assuming the 90 days horizon Salient Investment is expected to generate 6.15 times less return on investment than Veea. But when comparing it to its historical volatility, Salient Investment Grade is 6.23 times less risky than Veea. It trades about 0.14 of its potential returns per unit of risk. Veea Inc is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 296.00 in Veea Inc on September 13, 2024 and sell it today you would earn a total of 53.00 from holding Veea Inc or generate 17.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salient Investment Grade vs. Veea Inc
Performance |
| Timeline |
| Salient Investment Grade |
| Veea Inc |
Salient Investment and Veea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salient Investment and Veea
The main advantage of trading using opposite Salient Investment and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salient Investment 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.| Salient Investment vs. Veea Inc | Salient Investment vs. VivoPower International PLC | Salient Investment vs. Alger Midcap Growth | Salient Investment vs. Alger Midcap Growth |
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Check out your portfolio center.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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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