Correlation Between RCM Technologies and VCI Global
Can any of the company-specific risk be diversified away by investing in both RCM Technologies and VCI Global 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 RCM Technologies and VCI Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RCM Technologies and VCI Global Limited, you can compare the effects of market volatilities on RCM Technologies and VCI Global 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 RCM Technologies with a short position of VCI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCM Technologies and VCI Global.
Diversification Opportunities for RCM Technologies and VCI Global
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RCM and VCI is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding RCM Technologies and VCI Global Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VCI Global Limited and RCM Technologies 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 RCM Technologies are associated (or correlated) with VCI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VCI Global Limited has no effect on the direction of RCM Technologies i.e., RCM Technologies and VCI Global go up and down completely randomly.
Pair Corralation between RCM Technologies and VCI Global
Given the investment horizon of 90 days RCM Technologies is expected to generate 0.33 times more return on investment than VCI Global. However, RCM Technologies is 2.99 times less risky than VCI Global. It trades about 0.25 of its potential returns per unit of risk. VCI Global Limited is currently generating about -0.25 per unit of risk. If you would invest 1,701 in RCM Technologies on April 25, 2025 and sell it today you would earn a total of 898.00 from holding RCM Technologies or generate 52.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
RCM Technologies vs. VCI Global Limited
Performance |
Timeline |
RCM Technologies |
VCI Global Limited |
RCM Technologies and VCI Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with RCM Technologies and VCI Global
The main advantage of trading using opposite RCM Technologies and VCI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCM Technologies position performs unexpectedly, VCI Global 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 VCI Global will offset losses from the drop in VCI Global's long position.RCM Technologies vs. FTAI Infrastructure | RCM Technologies vs. Seaboard | RCM Technologies vs. Mammoth Energy Services | RCM Technologies vs. Willis Lease Finance |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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