Correlation Between VNET Group and Hackett
Can any of the company-specific risk be diversified away by investing in both VNET Group and Hackett 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 Hackett 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 The Hackett Group, you can compare the effects of market volatilities on VNET Group and Hackett 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 Hackett. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and Hackett.
Diversification Opportunities for VNET Group and Hackett
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between VNET and Hackett is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and The Hackett Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hackett Group 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 Hackett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hackett Group has no effect on the direction of VNET Group i.e., VNET Group and Hackett go up and down completely randomly.
Pair Corralation between VNET Group and Hackett
Given the investment horizon of 90 days VNET Group DRC is expected to under-perform the Hackett. In addition to that, VNET Group is 8.43 times more volatile than The Hackett Group. It trades about -0.1 of its total potential returns per unit of risk. The Hackett Group is currently generating about -0.14 per unit of volatility. If you would invest 2,997 in The Hackett Group on December 31, 2024 and sell it today you would lose (75.00) from holding The Hackett Group or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VNET Group DRC vs. The Hackett Group
Performance |
| Timeline |
| VNET Group DRC |
| Hackett Group |
VNET Group and Hackett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VNET Group and Hackett
The main advantage of trading using opposite VNET Group and Hackett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group position performs unexpectedly, Hackett 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 Hackett will offset losses from the drop in Hackett's long position.| VNET Group vs. CLARIVATE PLC | ||
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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