Correlation Between VCI Global and RCM Technologies

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

Diversification Opportunities for VCI Global and RCM Technologies

-0.45

Correlation Coefficient

VCI Global  RCM Technologies

Very good diversification

The 3 months correlation between VCI and RCM is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding VCI Global Limited and RCM Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCM 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 RCM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCM Technologies has no effect on the direction of VCI Global i.e., VCI Global and RCM Technologies go up and down completely randomly.

Pair Corralation between VCI Global and RCM Technologies

Given the investment horizon of 90 days VCI Global Limited is expected to under-perform the RCM Technologies. In addition to that, VCI Global is 4.54 times more volatile than RCM Technologies. It trades about -0.19 of its total potential returns per unit of risk. RCM Technologies is currently generating about 0.04 per unit of volatility. If you would invest  2,330  in RCM Technologies on May 15, 2025 and sell it today you would earn a total of  82.00  from holding RCM Technologies or generate 3.52% 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.  RCM Technologies

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

RCM Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in RCM Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable primary indicators, RCM Technologies is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with VCI Global and RCM Technologies

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

The idea behind VCI Global Limited and RCM Technologies 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..