Correlation Between Veeva Systems and Hologic

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

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

Diversification Opportunities for Veeva Systems and Hologic

0.68

Correlation Coefficient

Veeva Systems  Hologic

Poor diversification

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

Pair Corralation between Veeva Systems and Hologic

Given the investment horizon of 90 days Veeva Systems is expected to generate 1.34 times less return on investment than Hologic. In addition to that, Veeva Systems is 1.17 times more volatile than Hologic. It trades about 0.11 of its total potential returns per unit of risk. Hologic is currently generating about 0.18 per unit of volatility. If you would invest  5,273  in Hologic on May 4, 2025 and sell it today you would earn a total of  1,443  from holding Hologic or generate 27.37% return on investment over 90 days.

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

Veeva Systems Class  vs.  Hologic

Veeva Systems Class

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Veeva Systems Class are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, Veeva Systems showed solid returns over the last few months and may actually be approaching a breakup point.

Hologic

Risk-Adjusted Performance

Good

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

Pair Trading with Veeva Systems and Hologic

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

The idea behind Veeva Systems Class and Hologic 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.