Correlation Between VCI Global and Bitcoin Depot

Can any of the company-specific risk be diversified away by investing in both VCI Global and Bitcoin Depot 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 Bitcoin Depot 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 Bitcoin Depot, you can compare the effects of market volatilities on VCI Global and Bitcoin Depot 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 Bitcoin Depot. Check out your portfolio center. Please also check ongoing floating volatility patterns of VCI Global and Bitcoin Depot.

Diversification Opportunities for VCI Global and Bitcoin Depot

0.66

Correlation Coefficient

VCI Global  Bitcoin Depot

Poor diversification

The 3 months correlation between VCI and Bitcoin is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding VCI Global Limited and Bitcoin Depot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Depot 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 Bitcoin Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Depot has no effect on the direction of VCI Global i.e., VCI Global and Bitcoin Depot go up and down completely randomly.

Pair Corralation between VCI Global and Bitcoin Depot

Given the investment horizon of 90 days VCI Global Limited is expected to under-perform the Bitcoin Depot. In addition to that, VCI Global is 2.2 times more volatile than Bitcoin Depot. It trades about -0.16 of its total potential returns per unit of risk. Bitcoin Depot is currently generating about 0.01 per unit of volatility. If you would invest  161.00  in Bitcoin Depot on December 27, 2024 and sell it today you would lose (2.00) from holding Bitcoin Depot or give up 1.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

VCI Global Limited  vs.  Bitcoin Depot

VCI Global Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days VCI Global Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Bitcoin Depot

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Depot are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Bitcoin Depot is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with VCI Global and Bitcoin Depot

The main advantage of trading using opposite VCI Global and Bitcoin Depot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VCI Global position performs unexpectedly, Bitcoin Depot 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 Bitcoin Depot will offset losses from the drop in Bitcoin Depot's long position.

The idea behind VCI Global Limited and Bitcoin Depot pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.