Correlation Between Veea and FiscalNote Holdings

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

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

Diversification Opportunities for Veea and FiscalNote Holdings

0.71

Correlation Coefficient

Veea  FiscalNote Holdings

Poor diversification

The 3 months correlation between Veea and FiscalNote is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Veea Inc and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings 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 FiscalNote Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FiscalNote Holdings has no effect on the direction of Veea i.e., Veea and FiscalNote Holdings go up and down completely randomly.

Pair Corralation between Veea and FiscalNote Holdings

Assuming the 90 days horizon Veea Inc is expected to generate 2.47 times more return on investment than FiscalNote Holdings. However, Veea is 2.47 times more volatile than FiscalNote Holdings. It trades about 0.08 of its potential returns per unit of risk. FiscalNote Holdings is currently generating about -0.15 per unit of risk. If you would invest  9.00  in Veea Inc on February 6, 2025 and sell it today you would earn a total of  0.13  from holding Veea Inc or generate 1.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	38.1%
Values	Daily Returns

Veea Inc  vs.  FiscalNote Holdings

Veea Inc

Risk-Adjusted Performance

Modest

Over the last 90 days Veea Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly inconsistent basic indicators, Veea showed solid returns over the last few months and may actually be approaching a breakup point.

FiscalNote Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days FiscalNote Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in June 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Veea and FiscalNote Holdings

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

The idea behind Veea Inc and FiscalNote Holdings 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 Stocks Directory module to find actively traded stocks across global markets.