Correlation Between VCI Global and Willdan
Can any of the company-specific risk be diversified away by investing in both VCI Global and Willdan 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 Willdan 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 Willdan Group, you can compare the effects of market volatilities on VCI Global and Willdan 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 Willdan. Check out your portfolio center. Please also check ongoing floating volatility patterns of VCI Global and Willdan.
Diversification Opportunities for VCI Global and Willdan
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VCI and Willdan is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding VCI Global Limited and Willdan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willdan Group 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 Willdan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willdan Group has no effect on the direction of VCI Global i.e., VCI Global and Willdan go up and down completely randomly.
Pair Corralation between VCI Global and Willdan
Given the investment horizon of 90 days VCI Global Limited is expected to under-perform the Willdan. In addition to that, VCI Global is 4.58 times more volatile than Willdan Group. It trades about -0.21 of its total potential returns per unit of risk. Willdan Group is currently generating about -0.11 per unit of volatility. If you would invest 4,628 in Willdan Group on August 28, 2024 and sell it today you would lose (327.00) from holding Willdan Group or give up 7.07% 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. Willdan Group
Performance |
| Timeline |
| VCI Global Limited |
| Willdan Group |
VCI Global and Willdan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VCI Global and Willdan
The main advantage of trading using opposite VCI Global and Willdan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VCI Global position performs unexpectedly, Willdan 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 Willdan will offset losses from the drop in Willdan'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 |
| Willdan vs. Franklin Covey | Willdan vs. TransUnion | Willdan vs. ICF International | Willdan 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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