Correlation Between Veea and CSP

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

By analyzing existing cross correlation between Veea Inc and CSP Inc, you can compare the effects of market volatilities on Veea and CSP 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 CSP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veea and CSP.

Diversification Opportunities for Veea and CSP

-0.68

Correlation Coefficient

Veea  CSP

Excellent diversification

The 3 months correlation between Veea and CSP is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Veea Inc and CSP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSP Inc 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 CSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSP Inc has no effect on the direction of Veea i.e., Veea and CSP go up and down completely randomly.

Pair Corralation between Veea and CSP

Assuming the 90 days horizon Veea Inc is expected to generate 3.34 times more return on investment than CSP. However, Veea is 3.34 times more volatile than CSP Inc. It trades about 0.19 of its potential returns per unit of risk. CSP Inc is currently generating about -0.15 per unit of risk. If you would invest  9.24  in Veea Inc on April 29, 2025 and sell it today you would earn a total of  9.76  from holding Veea Inc or generate 105.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	70.97%
Values	Daily Returns

Veea Inc  vs.  CSP Inc

Veea Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Veea Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Veea showed solid returns over the last few months and may actually be approaching a breakup point.

CSP Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CSP Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Veea and CSP

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

The idea behind Veea Inc and CSP Inc 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.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.