Correlation Between VCI Global and Digital Ally

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

Diversification Opportunities for VCI Global and Digital Ally

-0.24
  Correlation Coefficient

Very good diversification

The 3 months correlation between VCI and Digital is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding VCI Global Limited and Digital Ally in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Ally 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 Digital Ally. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Ally has no effect on the direction of VCI Global i.e., VCI Global and Digital Ally go up and down completely randomly.

Pair Corralation between VCI Global and Digital Ally

Given the investment horizon of 90 days VCI Global Limited is expected to under-perform the Digital Ally. In addition to that, VCI Global is 3.54 times more volatile than Digital Ally. It trades about -0.22 of its total potential returns per unit of risk. Digital Ally is currently generating about -0.04 per unit of volatility. If you would invest  172.00  in Digital Ally on August 15, 2025 and sell it today you would lose (25.00) from holding Digital Ally or give up 14.53% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy96.88%
ValuesDaily Returns

VCI Global Limited  vs.  Digital Ally

 Performance 
       Timeline  
VCI Global Limited 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days VCI Global Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Digital Ally 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Digital Ally has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

VCI Global and Digital Ally Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with VCI Global and Digital Ally

The main advantage of trading using opposite VCI Global and Digital Ally positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VCI Global position performs unexpectedly, Digital Ally 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 Digital Ally will offset losses from the drop in Digital Ally's long position.
The idea behind VCI Global Limited and Digital Ally 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 Global Correlations module to find global opportunities by holding instruments from different markets.

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