Correlation Between Veea and Digimarc
Can any of the company-specific risk be diversified away by investing in both Veea and Digimarc 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 Digimarc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veea Inc and Digimarc, you can compare the effects of market volatilities on Veea and Digimarc 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 Digimarc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veea and Digimarc.
Diversification Opportunities for Veea and Digimarc
Very good diversification
The 3 months correlation between Veea and Digimarc is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Veea Inc and Digimarc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digimarc 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 Digimarc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digimarc has no effect on the direction of Veea i.e., Veea and Digimarc go up and down completely randomly.
Pair Corralation between Veea and Digimarc
Given the investment horizon of 90 days Veea Inc is expected to under-perform the Digimarc. In addition to that, Veea is 1.4 times more volatile than Digimarc. It trades about -0.04 of its total potential returns per unit of risk. Digimarc is currently generating about 0.12 per unit of volatility. If you would invest 3,098 in Digimarc on September 1, 2024 and sell it today you would earn a total of 291.00 from holding Digimarc or generate 9.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Veea Inc vs. Digimarc
Performance |
| Timeline |
| Veea Inc |
| Digimarc |
Veea and Digimarc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veea and Digimarc
The main advantage of trading using opposite Veea and Digimarc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veea position performs unexpectedly, Digimarc 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 Digimarc will offset losses from the drop in Digimarc's long position.The idea behind Veea Inc and Digimarc 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.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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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