Correlation Between Elcom Technology and VTC Telecommunicatio

Can any of the company-specific risk be diversified away by investing in both Elcom Technology and VTC Telecommunicatio 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 Elcom Technology and VTC Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Elcom Technology Communications and VTC Telecommunications JSC, you can compare the effects of market volatilities on Elcom Technology and VTC Telecommunicatio 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 Elcom Technology with a short position of VTC Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elcom Technology and VTC Telecommunicatio.

Diversification Opportunities for Elcom Technology and VTC Telecommunicatio

-0.29

Correlation Coefficient

Elcom Technology  VTC Telecommunicatio

Very good diversification

The 3 months correlation between Elcom and VTC is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Elcom Technology Communication and VTC Telecommunications JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VTC Telecommunications and Elcom Technology 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 Elcom Technology Communications are associated (or correlated) with VTC Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VTC Telecommunications has no effect on the direction of Elcom Technology i.e., Elcom Technology and VTC Telecommunicatio go up and down completely randomly.

Pair Corralation between Elcom Technology and VTC Telecommunicatio

Assuming the 90 days trading horizon Elcom Technology Communications is expected to generate 0.45 times more return on investment than VTC Telecommunicatio. However, Elcom Technology Communications is 2.21 times less risky than VTC Telecommunicatio. It trades about 0.11 of its potential returns per unit of risk. VTC Telecommunications JSC is currently generating about 0.02 per unit of risk. If you would invest  2,170,000  in Elcom Technology Communications on April 27, 2025 and sell it today you would earn a total of  230,000  from holding Elcom Technology Communications or generate 10.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	71.43%
Values	Daily Returns

Elcom Technology Communication  vs.  VTC Telecommunications JSC

Elcom Technology Com

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Elcom Technology Communications are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Elcom Technology may actually be approaching a critical reversion point that can send shares even higher in August 2025.

VTC Telecommunications

Risk-Adjusted Performance

Weak

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

Pair Trading with Elcom Technology and VTC Telecommunicatio

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

The idea behind Elcom Technology Communications and VTC Telecommunications JSC 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.