Correlation Between VCI Global and RB Global

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

Diversification Opportunities for VCI Global and RB Global

-0.41

Correlation Coefficient

VCI Global  RB Global

Very good diversification

The 3 months correlation between VCI and RBA is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding VCI Global Limited and RB Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RB Global 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 RB Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RB Global has no effect on the direction of VCI Global i.e., VCI Global and RB Global go up and down completely randomly.

Pair Corralation between VCI Global and RB Global

Given the investment horizon of 90 days VCI Global Limited is expected to under-perform the RB Global. In addition to that, VCI Global is 9.01 times more volatile than RB Global. It trades about -0.23 of its total potential returns per unit of risk. RB Global is currently generating about 0.04 per unit of volatility. If you would invest  10,531  in RB Global on July 7, 2025 and sell it today you would earn a total of  309.00  from holding RB Global or generate 2.93% 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.  RB Global

VCI Global Limited

Risk-Adjusted Performance

Weakest

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

RB Global

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in RB Global are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, RB Global is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with VCI Global and RB Global

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

The idea behind VCI Global Limited and RB Global 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.