Correlation Between ICF International and VCI Global
Can any of the company-specific risk be diversified away by investing in both ICF International and VCI Global 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 ICF International and VCI Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICF International and VCI Global Limited, you can compare the effects of market volatilities on ICF International and VCI Global 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 ICF International with a short position of VCI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICF International and VCI Global.
Diversification Opportunities for ICF International and VCI Global
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICF and VCI is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ICF International and VCI Global Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VCI Global Limited and ICF International 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 ICF International are associated (or correlated) with VCI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VCI Global Limited has no effect on the direction of ICF International i.e., ICF International and VCI Global go up and down completely randomly.
Pair Corralation between ICF International and VCI Global
Given the investment horizon of 90 days ICF International is expected to under-perform the VCI Global. But the stock apears to be less risky and, when comparing its historical volatility, ICF International is 9.74 times less risky than VCI Global. The stock trades about -0.28 of its potential returns per unit of risk. The VCI Global Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 397.00 in VCI Global Limited on September 1, 2024 and sell it today you would earn a total of 42.00 from holding VCI Global Limited or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICF International vs. VCI Global Limited
Performance |
| Timeline |
| ICF International |
| VCI Global Limited |
ICF International and VCI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICF International and VCI Global
The main advantage of trading using opposite ICF International and VCI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICF International position performs unexpectedly, VCI Global 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 VCI Global will offset losses from the drop in VCI Global's long position.| ICF International vs. Forrester Research | ICF International vs. Huron Consulting Group | ICF International vs. Franklin Covey | ICF International vs. FTI Consulting |
| VCI Global vs. CRA International | VCI Global vs. ICF International | VCI Global vs. Forrester Research | VCI Global vs. Huron Consulting Group |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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