Correlation Between Veea and Columbia Seligman
Can any of the company-specific risk be diversified away by investing in both Veea and Columbia Seligman 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 Columbia Seligman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veea Inc and Columbia Seligman Munications, you can compare the effects of market volatilities on Veea and Columbia Seligman 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 Columbia Seligman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veea and Columbia Seligman.
Diversification Opportunities for Veea and Columbia Seligman
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Veea and Columbia is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Veea Inc and Columbia Seligman Munications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Seligman 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 Columbia Seligman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Seligman has no effect on the direction of Veea i.e., Veea and Columbia Seligman go up and down completely randomly.
Pair Corralation between Veea and Columbia Seligman
Given the investment horizon of 90 days Veea Inc is expected to generate 1.22 times more return on investment than Columbia Seligman. However, Veea is 1.22 times more volatile than Columbia Seligman Munications. It trades about 0.08 of its potential returns per unit of risk. Columbia Seligman Munications is currently generating about -0.18 per unit of risk. If you would invest 297.00 in Veea Inc on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Veea Inc or generate 7.41% 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. Columbia Seligman Munications
Performance |
| Timeline |
| Veea Inc |
| Columbia Seligman |
Veea and Columbia Seligman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veea and Columbia Seligman
The main advantage of trading using opposite Veea and Columbia Seligman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veea position performs unexpectedly, Columbia Seligman 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 Columbia Seligman will offset losses from the drop in Columbia Seligman's long position.| Veea vs. Bank of New | Veea vs. Revolve Group LLC | Veea vs. Cedar Realty Trust | Veea vs. Lululemon Athletica |
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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.
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