Correlation Between VCI Global and Smart Powerr
Can any of the company-specific risk be diversified away by investing in both VCI Global and Smart Powerr 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 Smart Powerr 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 Smart Powerr Corp, you can compare the effects of market volatilities on VCI Global and Smart Powerr 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 Smart Powerr. Check out your portfolio center. Please also check ongoing floating volatility patterns of VCI Global and Smart Powerr.
Diversification Opportunities for VCI Global and Smart Powerr
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VCI and Smart is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding VCI Global Limited and Smart Powerr Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Powerr 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 Smart Powerr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Powerr Corp has no effect on the direction of VCI Global i.e., VCI Global and Smart Powerr go up and down completely randomly.
Pair Corralation between VCI Global and Smart Powerr
Given the investment horizon of 90 days VCI Global Limited is expected to under-perform the Smart Powerr. In addition to that, VCI Global is 1.06 times more volatile than Smart Powerr Corp. It trades about -0.2 of its total potential returns per unit of risk. Smart Powerr Corp is currently generating about -0.16 per unit of volatility. If you would invest 671.00 in Smart Powerr Corp on April 23, 2025 and sell it today you would lose (450.40) from holding Smart Powerr Corp or give up 67.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
VCI Global Limited vs. Smart Powerr Corp
Performance |
Timeline |
VCI Global Limited |
Smart Powerr Corp |
VCI Global and Smart Powerr Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VCI Global and Smart Powerr
The main advantage of trading using opposite VCI Global and Smart Powerr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VCI Global position performs unexpectedly, Smart Powerr 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 Smart Powerr will offset losses from the drop in Smart Powerr's long position.VCI Global vs. Genpact Limited | VCI Global vs. Broadridge Financial Solutions | VCI Global vs. First Advantage Corp | VCI Global vs. Franklin Covey |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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