Correlation Between JIADE LIMITED and VNET Group
Can any of the company-specific risk be diversified away by investing in both JIADE LIMITED 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 JIADE LIMITED and VNET Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIADE LIMITED Common and VNET Group DRC, you can compare the effects of market volatilities on JIADE LIMITED 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 JIADE LIMITED with a short position of VNET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIADE LIMITED and VNET Group.
Diversification Opportunities for JIADE LIMITED and VNET Group
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between JIADE and VNET is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding JIADE LIMITED Common 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 JIADE LIMITED 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 JIADE LIMITED Common 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 JIADE LIMITED i.e., JIADE LIMITED and VNET Group go up and down completely randomly.
Pair Corralation between JIADE LIMITED and VNET Group
Given the investment horizon of 90 days JIADE LIMITED Common is expected to under-perform the VNET Group. But the stock apears to be less risky and, when comparing its historical volatility, JIADE LIMITED Common is 1.37 times less risky than VNET Group. The stock trades about -0.06 of its potential returns per unit of risk. The VNET Group DRC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 554.00 in VNET Group DRC on January 15, 2025 and sell it today you would lose (15.00) from holding VNET Group DRC or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIADE LIMITED Common vs. VNET Group DRC
Performance |
| Timeline |
| JIADE LIMITED Common |
| VNET Group DRC |
JIADE LIMITED and VNET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIADE LIMITED and VNET Group
The main advantage of trading using opposite JIADE LIMITED and VNET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIADE LIMITED 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.| JIADE LIMITED vs. GMS Inc | ||
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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