Correlation Between VCI Global and EVgo Equity
Can any of the company-specific risk be diversified away by investing in both VCI Global and EVgo Equity 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 EVgo Equity 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 EVgo Equity Warrants, you can compare the effects of market volatilities on VCI Global and EVgo Equity 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 EVgo Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of VCI Global and EVgo Equity.
Diversification Opportunities for VCI Global and EVgo Equity
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VCI and EVgo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding VCI Global Limited and EVgo Equity Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVgo Equity Warrants 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 EVgo Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVgo Equity Warrants has no effect on the direction of VCI Global i.e., VCI Global and EVgo Equity go up and down completely randomly.
Pair Corralation between VCI Global and EVgo Equity
Given the investment horizon of 90 days VCI Global Limited is expected to under-perform the EVgo Equity. But the stock apears to be less risky and, when comparing its historical volatility, VCI Global Limited is 1.96 times less risky than EVgo Equity. The stock trades about -0.19 of its potential returns per unit of risk. The EVgo Equity Warrants is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 20.00 in EVgo Equity Warrants on August 26, 2024 and sell it today you would earn a total of 91.00 from holding EVgo Equity Warrants or generate 455.0% 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. EVgo Equity Warrants
Performance |
| Timeline |
| VCI Global Limited |
| EVgo Equity Warrants |
VCI Global and EVgo Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VCI Global and EVgo Equity
The main advantage of trading using opposite VCI Global and EVgo Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VCI Global position performs unexpectedly, EVgo Equity 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 EVgo Equity will offset losses from the drop in EVgo Equity's long position.| VCI Global vs. Genpact Limited | VCI Global vs. Broadridge Financial Solutions | VCI Global vs. First Advantage Corp | VCI Global vs. Franklin Covey |
| EVgo Equity vs. Nuvve Holding Corp | EVgo Equity vs. Paysafe Ltd Wt | EVgo Equity vs. Canoo Holdings | EVgo Equity vs. Microvast Holdings |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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