Correlation Between Veeco Instruments and Safe Bulkers

Can any of the company-specific risk be diversified away by investing in both Veeco Instruments and Safe Bulkers 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 Veeco Instruments and Safe Bulkers into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Veeco Instruments and Safe Bulkers, you can compare the effects of market volatilities on Veeco Instruments and Safe Bulkers 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 Veeco Instruments with a short position of Safe Bulkers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veeco Instruments and Safe Bulkers.

Diversification Opportunities for Veeco Instruments and Safe Bulkers

0.34

Correlation Coefficient

Veeco Instruments  Safe Bulkers

Weak diversification

The 3 months correlation between Veeco and Safe is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Veeco Instruments and Safe Bulkers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe Bulkers and Veeco Instruments 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 Veeco Instruments are associated (or correlated) with Safe Bulkers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe Bulkers has no effect on the direction of Veeco Instruments i.e., Veeco Instruments and Safe Bulkers go up and down completely randomly.

Pair Corralation between Veeco Instruments and Safe Bulkers

Given the investment horizon of 90 days Veeco Instruments is expected to generate 1.85 times less return on investment than Safe Bulkers. In addition to that, Veeco Instruments is 1.32 times more volatile than Safe Bulkers. It trades about 0.07 of its total potential returns per unit of risk. Safe Bulkers is currently generating about 0.17 per unit of volatility. If you would invest  335.00  in Safe Bulkers on May 7, 2025 and sell it today you would earn a total of  73.00  from holding Safe Bulkers or generate 21.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Veeco Instruments  vs.  Safe Bulkers

Veeco Instruments

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Veeco Instruments are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, Veeco Instruments may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Safe Bulkers

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Safe Bulkers are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental drivers, Safe Bulkers sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Veeco Instruments and Safe Bulkers

The main advantage of trading using opposite Veeco Instruments and Safe Bulkers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veeco Instruments position performs unexpectedly, Safe Bulkers 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 Safe Bulkers will offset losses from the drop in Safe Bulkers' long position.

The idea behind Veeco Instruments and Safe Bulkers 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.