Correlation Between Phoenix New and VNET Group
Can any of the company-specific risk be diversified away by investing in both Phoenix New 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 Phoenix New and VNET Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phoenix New Media and VNET Group DRC, you can compare the effects of market volatilities on Phoenix New 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 Phoenix New with a short position of VNET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix New and VNET Group.
Diversification Opportunities for Phoenix New and VNET Group
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Phoenix and VNET is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix New Media 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 Phoenix New 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 Phoenix New Media 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 Phoenix New i.e., Phoenix New and VNET Group go up and down completely randomly.
Pair Corralation between Phoenix New and VNET Group
Given the investment horizon of 90 days Phoenix New Media is expected to under-perform the VNET Group. But the stock apears to be less risky and, when comparing its historical volatility, Phoenix New Media is 1.61 times less risky than VNET Group. The stock trades about -0.1 of its potential returns per unit of risk. The VNET Group DRC is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 832.00 in VNET Group DRC on November 19, 2025 and sell it today you would earn a total of 543.00 from holding VNET Group DRC or generate 65.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phoenix New Media vs. VNET Group DRC
Performance |
| Timeline |
| Phoenix New Media |
| VNET Group DRC |
Phoenix New and VNET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix New and VNET Group
The main advantage of trading using opposite Phoenix New and VNET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix New 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.| Phoenix New vs. Cheetah Mobile | Phoenix New vs. Strive Asset Management | Phoenix New vs. Thryv Holdings | Phoenix New vs. LightInTheBox Holding Co |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |