Correlation Between BIT Mining and VNET Group
Can any of the company-specific risk be diversified away by investing in both BIT Mining 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 BIT Mining and VNET Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Mining and VNET Group DRC, you can compare the effects of market volatilities on BIT Mining 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 BIT Mining with a short position of VNET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Mining and VNET Group.
Diversification Opportunities for BIT Mining and VNET Group
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between BIT and VNET is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding BIT Mining 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 BIT Mining 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 BIT Mining 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 BIT Mining i.e., BIT Mining and VNET Group go up and down completely randomly.
Pair Corralation between BIT Mining and VNET Group
Given the investment horizon of 90 days BIT Mining is expected to under-perform the VNET Group. But the stock apears to be less risky and, when comparing its historical volatility, BIT Mining is 1.29 times less risky than VNET Group. The stock trades about -0.03 of its potential returns per unit of risk. The VNET Group DRC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 360.00 in VNET Group DRC on August 27, 2024 and sell it today you would earn a total of 15.00 from holding VNET Group DRC or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIT Mining vs. VNET Group DRC
Performance |
| Timeline |
| BIT Mining |
| VNET Group DRC |
BIT Mining and VNET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Mining and VNET Group
The main advantage of trading using opposite BIT Mining and VNET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Mining 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.| BIT Mining vs. VNET Group DRC | BIT Mining vs. GDS Holdings | BIT Mining vs. CLARIVATE PLC | BIT Mining vs. CACI International |
| VNET Group vs. CLARIVATE PLC | VNET Group vs. WNS Holdings | VNET Group vs. GDS Holdings | VNET Group vs. CACI International |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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