Correlation Between VCI Global and Blue Sphere

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

Diversification Opportunities for VCI Global and Blue Sphere

-0.23

Correlation Coefficient

VCI Global  Blue Sphere

Very good diversification

The 3 months correlation between VCI and Blue is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding VCI Global Limited and Blue Sphere Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sphere Corp 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 Blue Sphere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sphere Corp has no effect on the direction of VCI Global i.e., VCI Global and Blue Sphere go up and down completely randomly.

Pair Corralation between VCI Global and Blue Sphere

Given the investment horizon of 90 days VCI Global Limited is expected to under-perform the Blue Sphere. But the stock apears to be less risky and, when comparing its historical volatility, VCI Global Limited is 38.08 times less risky than Blue Sphere. The stock trades about -0.18 of its potential returns per unit of risk. The Blue Sphere Corp is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Blue Sphere Corp on April 30, 2025 and sell it today you would earn a total of  0.01  from holding Blue Sphere Corp or generate 9.223372036854776E16% return on investment over 90 days.

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

VCI Global Limited  vs.  Blue Sphere Corp

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

Blue Sphere Corp

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Sphere Corp are ranked lower than 32 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Blue Sphere reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VCI Global and Blue Sphere

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

The idea behind VCI Global Limited and Blue Sphere Corp 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .