Correlation Between VNET Group and ASGN
Can any of the company-specific risk be diversified away by investing in both VNET Group and ASGN 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 VNET Group and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VNET Group DRC and ASGN Inc, you can compare the effects of market volatilities on VNET Group and ASGN 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 VNET Group with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and ASGN.
Diversification Opportunities for VNET Group and ASGN
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between VNET and ASGN is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and VNET Group 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 VNET Group DRC are associated (or correlated) with ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of VNET Group i.e., VNET Group and ASGN go up and down completely randomly.
Pair Corralation between VNET Group and ASGN
Given the investment horizon of 90 days VNET Group DRC is expected to generate 2.39 times more return on investment than ASGN. However, VNET Group is 2.39 times more volatile than ASGN Inc. It trades about 0.05 of its potential returns per unit of risk. ASGN Inc is currently generating about -0.03 per unit of risk. If you would invest 360.00 in VNET Group DRC on August 28, 2024 and sell it today you would earn a total of 9.00 from holding VNET Group DRC or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VNET Group DRC vs. ASGN Inc
Performance |
| Timeline |
| VNET Group DRC |
| ASGN Inc |
VNET Group and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VNET Group and ASGN
The main advantage of trading using opposite VNET Group and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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