Correlation Between NYSE Composite and Veea
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Veea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Veea Inc, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Veea. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Veea.
Diversification Opportunities for NYSE Composite and Veea
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Veea is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Veea go up and down completely randomly.
Pair Corralation between NYSE Composite and Veea
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.03 times more return on investment than Veea. However, NYSE Composite is 31.11 times less risky than Veea. It trades about 0.16 of its potential returns per unit of risk. Veea Inc is currently generating about -0.04 per unit of risk. If you would invest 1,544,050 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 483,154 from holding NYSE Composite or generate 31.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 20.82% |
| Values | Daily Returns |
NYSE Composite vs. Veea Inc
Performance |
| Timeline |
NYSE Composite and Veea Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Veea Inc
Pair trading matchups for Veea
Pair Trading with NYSE Composite and Veea
The main advantage of trading using opposite NYSE Composite and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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