Correlation Between VNET Group and DXC Technology
Can any of the company-specific risk be diversified away by investing in both VNET Group and DXC Technology 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 DXC Technology 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 DXC Technology Co, you can compare the effects of market volatilities on VNET Group and DXC Technology 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 DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and DXC Technology.
Diversification Opportunities for VNET Group and DXC Technology
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between VNET and DXC is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and DXC Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology 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 DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of VNET Group i.e., VNET Group and DXC Technology go up and down completely randomly.
Pair Corralation between VNET Group and DXC Technology
Given the investment horizon of 90 days VNET Group DRC is expected to under-perform the DXC Technology. In addition to that, VNET Group is 1.44 times more volatile than DXC Technology Co. It trades about -0.06 of its total potential returns per unit of risk. DXC Technology Co is currently generating about 0.54 per unit of volatility. If you would invest 1,277 in DXC Technology Co on September 25, 2025 and sell it today you would earn a total of 226.00 from holding DXC Technology Co or generate 17.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VNET Group DRC vs. DXC Technology Co
Performance |
| Timeline |
| VNET Group DRC |
| DXC Technology |
VNET Group and DXC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VNET Group and DXC Technology
The main advantage of trading using opposite VNET Group and DXC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group position performs unexpectedly, DXC Technology 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 DXC Technology will offset losses from the drop in DXC Technology's long position.| VNET Group vs. C3 Ai Inc | VNET Group vs. Globant SA | VNET Group vs. Innodata | VNET Group vs. CLARIVATE PLC |
| DXC Technology vs. CLARIVATE PLC | DXC Technology vs. Innodata | DXC Technology vs. C3 Ai Inc | DXC Technology vs. VNET Group DRC |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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