Correlation Between VCI Global and CSX
Can any of the company-specific risk be diversified away by investing in both VCI Global and CSX 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 VCI Global and CSX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VCI Global Limited and CSX Corporation, you can compare the effects of market volatilities on VCI Global and CSX 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 VCI Global with a short position of CSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of VCI Global and CSX.
Diversification Opportunities for VCI Global and CSX
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VCI and CSX is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding VCI Global Limited and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation and VCI Global 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 VCI Global Limited are associated (or correlated) with CSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX Corporation has no effect on the direction of VCI Global i.e., VCI Global and CSX go up and down completely randomly.
Pair Corralation between VCI Global and CSX
Given the investment horizon of 90 days VCI Global Limited is expected to under-perform the CSX. In addition to that, VCI Global is 14.27 times more volatile than CSX Corporation. It trades about -0.01 of its total potential returns per unit of risk. CSX Corporation is currently generating about 0.2 per unit of volatility. If you would invest 3,325 in CSX Corporation on August 30, 2024 and sell it today you would earn a total of 333.00 from holding CSX Corporation or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VCI Global Limited vs. CSX Corp.
Performance |
| Timeline |
| VCI Global Limited |
| CSX Corporation |
VCI Global and CSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VCI Global and CSX
The main advantage of trading using opposite VCI Global and CSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VCI Global position performs unexpectedly, CSX 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 CSX will offset losses from the drop in CSX's long position.| VCI Global vs. CRA International | VCI Global vs. ICF International | VCI Global vs. Forrester Research | VCI Global vs. Huron Consulting Group |
| CSX vs. Union Pacific | CSX vs. Canadian National Railway | CSX vs. Canadian Pacific Railway | CSX vs. Westinghouse Air Brake |
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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