Correlation Between VCI Global and International Money
Can any of the company-specific risk be diversified away by investing in both VCI Global and International Money 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 International Money 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 International Money Express, you can compare the effects of market volatilities on VCI Global and International Money 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 International Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of VCI Global and International Money.
Diversification Opportunities for VCI Global and International Money
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VCI and International is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding VCI Global Limited and International Money Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Money 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 International Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Money has no effect on the direction of VCI Global i.e., VCI Global and International Money go up and down completely randomly.
Pair Corralation between VCI Global and International Money
Given the investment horizon of 90 days VCI Global Limited is expected to generate 10.67 times more return on investment than International Money. However, VCI Global is 10.67 times more volatile than International Money Express. It trades about 0.09 of its potential returns per unit of risk. International Money Express is currently generating about 0.31 per unit of risk. If you would invest 426.00 in VCI Global Limited on August 31, 2024 and sell it today you would lose (16.00) from holding VCI Global Limited or give up 3.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VCI Global Limited vs. International Money Express
Performance |
| Timeline |
| VCI Global Limited |
| International Money |
VCI Global and International Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VCI Global and International Money
The main advantage of trading using opposite VCI Global and International Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VCI Global position performs unexpectedly, International Money 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 International Money will offset losses from the drop in International Money's long position.| VCI Global vs. CRA International | VCI Global vs. ICF International | VCI Global vs. Forrester Research | VCI Global vs. Huron Consulting Group |
| International Money vs. NetScout Systems | International Money vs. Consensus Cloud Solutions | International Money vs. CSG Systems International | International Money vs. EverCommerce |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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