Correlation Between VCI Global and YXTCOM GROUP
Can any of the company-specific risk be diversified away by investing in both VCI Global and YXTCOM GROUP 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 YXTCOM GROUP 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 YXTCOM GROUP HOLDING, you can compare the effects of market volatilities on VCI Global and YXTCOM GROUP 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 YXTCOM GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of VCI Global and YXTCOM GROUP.
Diversification Opportunities for VCI Global and YXTCOM GROUP
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VCI and YXTCOM is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding VCI Global Limited and YXTCOM GROUP HOLDING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YXTCOM GROUP HOLDING 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 YXTCOM GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YXTCOM GROUP HOLDING has no effect on the direction of VCI Global i.e., VCI Global and YXTCOM GROUP go up and down completely randomly.
Pair Corralation between VCI Global and YXTCOM GROUP
Given the investment horizon of 90 days VCI Global Limited is expected to under-perform the YXTCOM GROUP. In addition to that, VCI Global is 1.69 times more volatile than YXTCOM GROUP HOLDING. It trades about -0.47 of its total potential returns per unit of risk. YXTCOM GROUP HOLDING is currently generating about -0.03 per unit of volatility. If you would invest 89.00 in YXTCOM GROUP HOLDING on January 11, 2025 and sell it today you would lose (9.01) from holding YXTCOM GROUP HOLDING or give up 10.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VCI Global Limited vs. YXTCOM GROUP HOLDING
Performance |
| Timeline |
| VCI Global Limited |
| YXTCOM GROUP HOLDING |
VCI Global and YXTCOM GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VCI Global and YXTCOM GROUP
The main advantage of trading using opposite VCI Global and YXTCOM GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VCI Global position performs unexpectedly, YXTCOM GROUP 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 YXTCOM GROUP will offset losses from the drop in YXTCOM GROUP's long position.| VCI Global vs. CRA International | VCI Global vs. ICF International | VCI Global vs. Forrester Research | VCI Global vs. Huron Consulting Group |
| YXTCOM GROUP vs. GMS Inc | YXTCOM GROUP vs. Quaker Chemical | YXTCOM GROUP vs. PPG Industries | YXTCOM GROUP vs. Pool Corporation |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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