Correlation Between VNET Group and Data Storage
Can any of the company-specific risk be diversified away by investing in both VNET Group and Data Storage 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 Data Storage 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 Data Storage, you can compare the effects of market volatilities on VNET Group and Data Storage 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 Data Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and Data Storage.
Diversification Opportunities for VNET Group and Data Storage
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VNET and Data is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and Data Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Storage 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 Data Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Storage has no effect on the direction of VNET Group i.e., VNET Group and Data Storage go up and down completely randomly.
Pair Corralation between VNET Group and Data Storage
Given the investment horizon of 90 days VNET Group DRC is expected to under-perform the Data Storage. But the stock apears to be less risky and, when comparing its historical volatility, VNET Group DRC is 3.97 times less risky than Data Storage. The stock trades about -0.05 of its potential returns per unit of risk. The Data Storage is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Data Storage on September 29, 2025 and sell it today you would earn a total of 3.00 from holding Data Storage or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
VNET Group DRC vs. Data Storage
Performance |
| Timeline |
| VNET Group DRC |
| Data Storage |
VNET Group and Data Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VNET Group and Data Storage
The main advantage of trading using opposite VNET Group and Data Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group position performs unexpectedly, Data Storage 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 Data Storage will offset losses from the drop in Data Storage's long position.| VNET Group vs. C3 Ai Inc | VNET Group vs. Globant SA | VNET Group vs. Innodata | VNET Group vs. CLARIVATE PLC |
| Data Storage vs. Cemtrex | Data Storage vs. Alpha Modus Holdings, | Data Storage vs. Youxin Technology Ltd | Data Storage vs. Infrared Cameras Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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