Correlation Between Safe Bulkers and VNET Group
Can any of the company-specific risk be diversified away by investing in both Safe Bulkers 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 Safe Bulkers and VNET Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe Bulkers and VNET Group DRC, you can compare the effects of market volatilities on Safe Bulkers 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 Safe Bulkers with a short position of VNET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe Bulkers and VNET Group.
Diversification Opportunities for Safe Bulkers and VNET Group
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Safe and VNET is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Safe Bulkers 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 Safe Bulkers 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 Safe Bulkers 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 Safe Bulkers i.e., Safe Bulkers and VNET Group go up and down completely randomly.
Pair Corralation between Safe Bulkers and VNET Group
Allowing for the 90-day total investment horizon Safe Bulkers is expected to generate 2.5 times less return on investment than VNET Group. But when comparing it to its historical volatility, Safe Bulkers is 2.68 times less risky than VNET Group. It trades about 0.08 of its potential returns per unit of risk. VNET Group DRC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 474.00 in VNET Group DRC on September 27, 2025 and sell it today you would earn a total of 395.00 from holding VNET Group DRC or generate 83.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safe Bulkers vs. VNET Group DRC
Performance |
| Timeline |
| Safe Bulkers |
| VNET Group DRC |
Safe Bulkers and VNET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe Bulkers and VNET Group
The main advantage of trading using opposite Safe Bulkers and VNET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe Bulkers 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.| Safe Bulkers vs. Ardmore Shpng | Safe Bulkers vs. Cool Company | Safe Bulkers vs. Euroseas | Safe Bulkers vs. Kforce Inc |
| 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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