Correlation Between Flexible Solutions and Veea
Can any of the company-specific risk be diversified away by investing in both Flexible 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 Flexible Solutions and Veea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexible Solutions International and Veea Inc, you can compare the effects of market volatilities on Flexible 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 Flexible Solutions with a short position of Veea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexible Solutions and Veea.
Diversification Opportunities for Flexible Solutions and Veea
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Flexible and Veea is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Flexible Solutions Internation and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc and Flexible 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 Flexible Solutions International 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 Flexible Solutions i.e., Flexible Solutions and Veea go up and down completely randomly.
Pair Corralation between Flexible Solutions and Veea
Considering the 90-day investment horizon Flexible Solutions International is expected to generate 0.19 times more return on investment than Veea. However, Flexible Solutions International is 5.37 times less risky than Veea. It trades about 0.11 of its potential returns per unit of risk. Veea Inc is currently generating about -0.03 per unit of risk. If you would invest 158.00 in Flexible Solutions International on September 14, 2024 and sell it today you would earn a total of 237.00 from holding Flexible Solutions International or generate 150.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 24.54% |
| Values | Daily Returns |
Flexible Solutions Internation vs. Veea Inc
Performance |
| Timeline |
| Flexible Solutions |
| Veea Inc |
Flexible Solutions and Veea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexible Solutions and Veea
The main advantage of trading using opposite Flexible Solutions and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexible 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.| Flexible Solutions vs. LyondellBasell Industries NV | Flexible Solutions vs. Cabot | Flexible Solutions vs. Westlake Chemical | Flexible Solutions vs. Air Products and |
| Veea vs. BJs Restaurants | Veea vs. Flexible Solutions International | Veea vs. Kura Sushi USA | Veea vs. Hudson Technologies |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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