Correlation Between VCI Global and U Power

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

Diversification Opportunities for VCI Global and U Power

-0.41

Correlation Coefficient

VCI Global  U Power

Very good diversification

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

Pair Corralation between VCI Global and U Power

Given the investment horizon of 90 days VCI Global Limited is expected to under-perform the U Power. In addition to that, VCI Global is 1.51 times more volatile than U Power Limited. It trades about -0.24 of its total potential returns per unit of risk. U Power Limited is currently generating about -0.09 per unit of volatility. If you would invest  339.00  in U Power Limited on May 3, 2025 and sell it today you would lose (137.00) from holding U Power Limited or give up 40.41% of portfolio value over 90 days.

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

VCI Global Limited  vs.  U Power Limited

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

U Power Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days U Power Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with VCI Global and U Power

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

The idea behind VCI Global Limited and U Power Limited 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.