Correlation Between Firstwave Cloud and VNET Group
Can any of the company-specific risk be diversified away by investing in both Firstwave Cloud 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 Firstwave Cloud and VNET Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firstwave Cloud Technology and VNET Group DRC, you can compare the effects of market volatilities on Firstwave Cloud 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 Firstwave Cloud with a short position of VNET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firstwave Cloud and VNET Group.
Diversification Opportunities for Firstwave Cloud and VNET Group
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Firstwave and VNET is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Firstwave Cloud Technology 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 Firstwave Cloud 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 Firstwave Cloud Technology 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 Firstwave Cloud i.e., Firstwave Cloud and VNET Group go up and down completely randomly.
Pair Corralation between Firstwave Cloud and VNET Group
Assuming the 90 days trading horizon Firstwave Cloud Technology is expected to under-perform the VNET Group. In addition to that, Firstwave Cloud is 2.25 times more volatile than VNET Group DRC. It trades about -0.08 of its total potential returns per unit of risk. VNET Group DRC is currently generating about 0.08 per unit of volatility. If you would invest 970.00 in VNET Group DRC on November 9, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firstwave Cloud Technology vs. VNET Group DRC
Performance |
| Timeline |
| Firstwave Cloud Tech |
| VNET Group DRC |
Firstwave Cloud and VNET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firstwave Cloud and VNET Group
The main advantage of trading using opposite Firstwave Cloud and VNET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firstwave Cloud 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.| Firstwave Cloud vs. Energy Resources of | Firstwave Cloud vs. Tigers Realm Coal | Firstwave Cloud vs. Sigma Healthcare | Firstwave Cloud vs. Telstra Group |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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