Correlation Between Veea and Hennessy Technology

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Veea and Hennessy Technology 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 Hennessy Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veea Inc and Hennessy Technology Fund, you can compare the effects of market volatilities on Veea and Hennessy Technology 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 Hennessy Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veea and Hennessy Technology.

Diversification Opportunities for Veea and Hennessy Technology

-0.58
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Veea and Hennessy is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Veea Inc and Hennessy Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hennessy Technology 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 Hennessy Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hennessy Technology has no effect on the direction of Veea i.e., Veea and Hennessy Technology go up and down completely randomly.

Pair Corralation between Veea and Hennessy Technology

Given the investment horizon of 90 days Veea Inc is expected to generate 4.58 times more return on investment than Hennessy Technology. However, Veea is 4.58 times more volatile than Hennessy Technology Fund. It trades about 0.14 of its potential returns per unit of risk. Hennessy Technology Fund is currently generating about -0.03 per unit of risk. If you would invest  296.00  in Veea Inc on September 13, 2024 and sell it today you would earn a total of  53.00  from holding Veea Inc or generate 17.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Veea Inc  vs.  Hennessy Technology Fund

 Performance 
       Timeline  
Veea Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Veea Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Hennessy Technology 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Hennessy Technology Fund are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Hennessy Technology may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Veea and Hennessy Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Veea and Hennessy Technology

The main advantage of trading using opposite Veea and Hennessy Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veea position performs unexpectedly, Hennessy Technology 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 Hennessy Technology will offset losses from the drop in Hennessy Technology's long position.
The idea behind Veea Inc and Hennessy Technology Fund 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

Other Complementary Tools

Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets