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

0.43

Correlation Coefficient

VCI Global  YXTCOM GROUP

Very weak diversification

The 3 months correlation between VCI and YXTCOM is 0.43. 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. But the stock apears to be less risky and, when comparing its historical volatility, VCI Global Limited is 1.07 times less risky than YXTCOM GROUP. The stock trades about -0.01 of its potential returns per unit of risk. The YXTCOM GROUP HOLDING is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  213.00  in YXTCOM GROUP HOLDING on October 14, 2024 and sell it today you would earn a total of  22.00  from holding YXTCOM GROUP HOLDING or generate 10.33% return on investment over 90 days.

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

VCI Global Limited  vs.  YXTCOM GROUP HOLDING

VCI Global Limited

Risk-Adjusted Performance

0 of 100

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 February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

YXTCOM GROUP HOLDING

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in YXTCOM GROUP HOLDING are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, YXTCOM GROUP may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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.

The idea behind VCI Global Limited and YXTCOM GROUP HOLDING 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 Stocks Directory module to find actively traded stocks across global markets.