Correlation Between VCI Global and Array Technologies
Can any of the company-specific risk be diversified away by investing in both VCI Global and Array Technologies 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 Array Technologies 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 Array Technologies, you can compare the effects of market volatilities on VCI Global and Array Technologies 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 Array Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of VCI Global and Array Technologies.
Diversification Opportunities for VCI Global and Array Technologies
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VCI and Array is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding VCI Global Limited and Array Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Array Technologies 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 Array Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Array Technologies has no effect on the direction of VCI Global i.e., VCI Global and Array Technologies go up and down completely randomly.
Pair Corralation between VCI Global and Array Technologies
Given the investment horizon of 90 days VCI Global Limited is expected to under-perform the Array Technologies. In addition to that, VCI Global is 1.47 times more volatile than Array Technologies. It trades about -0.26 of its total potential returns per unit of risk. Array Technologies is currently generating about 0.09 per unit of volatility. If you would invest 529.00 in Array Technologies on April 26, 2025 and sell it today you would earn a total of 139.00 from holding Array Technologies or generate 26.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
VCI Global Limited vs. Array Technologies
Performance |
Timeline |
VCI Global Limited |
Array Technologies |
VCI Global and Array Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VCI Global and Array Technologies
The main advantage of trading using opposite VCI Global and Array Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VCI Global position performs unexpectedly, Array Technologies 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 Array Technologies will offset losses from the drop in Array Technologies' long position.VCI Global vs. CRA International | VCI Global vs. ICF International | VCI Global vs. Forrester Research | VCI Global vs. Huron Consulting Group |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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