Correlation Between Veea and Flex
Can any of the company-specific risk be diversified away by investing in both Veea and Flex 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 Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veea Inc and Flex, you can compare the effects of market volatilities on Veea and Flex 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 Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veea and Flex.
Diversification Opportunities for Veea and Flex
Excellent diversification
The 3 months correlation between Veea and Flex is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Veea Inc and Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flex 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 Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flex has no effect on the direction of Veea i.e., Veea and Flex go up and down completely randomly.
Pair Corralation between Veea and Flex
Given the investment horizon of 90 days Veea Inc is expected to under-perform the Flex. In addition to that, Veea is 5.06 times more volatile than Flex. It trades about -0.02 of its total potential returns per unit of risk. Flex is currently generating about 0.09 per unit of volatility. If you would invest 982.00 in Flex on September 12, 2024 and sell it today you would earn a total of 2,811 from holding Flex or generate 286.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 12.93% |
| Values | Daily Returns |
Veea Inc vs. Flex
Performance |
| Timeline |
| Veea Inc |
| Flex |
Veea and Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veea and Flex
The main advantage of trading using opposite Veea and Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veea position performs unexpectedly, Flex 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 Flex will offset losses from the drop in Flex's long position.| Veea vs. Bank of New | Veea vs. Revolve Group LLC | Veea vs. Cedar Realty Trust | Veea vs. Lululemon Athletica |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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