Correlation Between Tesla and Veea

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Can any of the company-specific risk be diversified away by investing in both Tesla 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 Tesla and Veea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tesla Inc and Veea Inc, you can compare the effects of market volatilities on Tesla 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 Tesla with a short position of Veea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tesla and Veea.

Diversification Opportunities for Tesla and Veea

TeslaVeeaDiversified AwayTeslaVeeaDiversified Away100%
0.78
  Correlation Coefficient

Poor diversification

The 3 months correlation between Tesla and Veea is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tesla Inc and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc and Tesla 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 Tesla Inc 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 Tesla i.e., Tesla and Veea go up and down completely randomly.

Pair Corralation between Tesla and Veea

Given the investment horizon of 90 days Tesla Inc is expected to generate 0.67 times more return on investment than Veea. However, Tesla Inc is 1.5 times less risky than Veea. It trades about 0.1 of its potential returns per unit of risk. Veea Inc is currently generating about -0.15 per unit of risk. If you would invest  25,427  in Tesla Inc on November 23, 2024 and sell it today you would earn a total of  10,013  from holding Tesla Inc or generate 39.38% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Tesla Inc  vs.  Veea Inc

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10010203040
JavaScript chart by amCharts 3.21.15TSLA VEEA
       Timeline  
Tesla Inc 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Tesla Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating essential indicators, Tesla may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb340360380400420440460480
Veea Inc 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Veea Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Veea is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2.533.54

Tesla and Veea Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-11.59-8.68-5.77-2.86-0.04852.835.818.7911.7614.74 0.0100.0150.0200.0250.030
JavaScript chart by amCharts 3.21.15TSLA VEEA
       Returns  

Pair Trading with Tesla and Veea

The main advantage of trading using opposite Tesla and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tesla 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.
The idea behind Tesla Inc and Veea Inc 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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