Correlation Between Allstate and VNET Group
Can any of the company-specific risk be diversified away by investing in both Allstate and VNET Group 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 Allstate and VNET Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Allstate and VNET Group DRC, you can compare the effects of market volatilities on Allstate and VNET Group 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 Allstate with a short position of VNET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allstate and VNET Group.
Diversification Opportunities for Allstate and VNET Group
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Allstate and VNET is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding The Allstate and VNET Group DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VNET Group DRC and Allstate 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 The Allstate are associated (or correlated) with VNET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VNET Group DRC has no effect on the direction of Allstate i.e., Allstate and VNET Group go up and down completely randomly.
Pair Corralation between Allstate and VNET Group
Considering the 90-day investment horizon Allstate is expected to generate 6.67 times less return on investment than VNET Group. But when comparing it to its historical volatility, The Allstate is 2.78 times less risky than VNET Group. It trades about 0.03 of its potential returns per unit of risk. VNET Group DRC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 970.00 in VNET Group DRC on November 10, 2025 and sell it today you would earn a total of 150.00 from holding VNET Group DRC or generate 15.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Allstate vs. VNET Group DRC
Performance |
| Timeline |
| Allstate |
| VNET Group DRC |
Allstate and VNET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allstate and VNET Group
The main advantage of trading using opposite Allstate and VNET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allstate position performs unexpectedly, VNET Group 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 VNET Group will offset losses from the drop in VNET Group's long position.| Allstate vs. Aflac Incorporated | Allstate vs. Chubb | Allstate vs. Cincinnati Financial | Allstate vs. Hartford Financial Services |
| VNET Group vs. C3 Ai Inc | VNET Group vs. Globant SA | VNET Group vs. Innodata | VNET Group vs. CLARIVATE PLC |
Check out your portfolio center.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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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