Correlation Between VCI Global and Robert Half

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

Diversification Opportunities for VCI Global and Robert Half

-0.82

Correlation Coefficient

VCI Global  Robert Half

Pay attention - limited upside

The 3 months correlation between VCI and Robert is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding VCI Global Limited and Robert Half International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robert Half International 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 Robert Half. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robert Half International has no effect on the direction of VCI Global i.e., VCI Global and Robert Half go up and down completely randomly.

Pair Corralation between VCI Global and Robert Half

Given the investment horizon of 90 days VCI Global Limited is expected to generate 11.5 times more return on investment than Robert Half. However, VCI Global is 11.5 times more volatile than Robert Half International. It trades about 0.15 of its potential returns per unit of risk. Robert Half International is currently generating about 0.2 per unit of risk. If you would invest  299.00  in VCI Global Limited on September 2, 2024 and sell it today you would earn a total of  140.00  from holding VCI Global Limited or generate 46.82% return on investment over 90 days.

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

VCI Global Limited  vs.  Robert Half International

VCI Global Limited

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in VCI Global Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent forward indicators, VCI Global reported solid returns over the last few months and may actually be approaching a breakup point.

Robert Half International

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Robert Half International are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, Robert Half demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VCI Global and Robert Half

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

The idea behind VCI Global Limited and Robert Half International 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.