Correlation Between VNET Group and Neptune Insurance
Can any of the company-specific risk be diversified away by investing in both VNET Group and Neptune Insurance 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 Neptune Insurance 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 Neptune Insurance Holdings, you can compare the effects of market volatilities on VNET Group and Neptune Insurance 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 Neptune Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and Neptune Insurance.
Diversification Opportunities for VNET Group and Neptune Insurance
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VNET and Neptune is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and Neptune Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neptune Insurance 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 Neptune Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neptune Insurance has no effect on the direction of VNET Group i.e., VNET Group and Neptune Insurance go up and down completely randomly.
Pair Corralation between VNET Group and Neptune Insurance
Given the investment horizon of 90 days VNET Group DRC is expected to under-perform the Neptune Insurance. But the stock apears to be less risky and, when comparing its historical volatility, VNET Group DRC is 1.37 times less risky than Neptune Insurance. The stock trades about -0.1 of its potential returns per unit of risk. The Neptune Insurance Holdings is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 2,389 in Neptune Insurance Holdings on September 30, 2025 and sell it today you would earn a total of 601.00 from holding Neptune Insurance Holdings or generate 25.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VNET Group DRC vs. Neptune Insurance Holdings
Performance |
| Timeline |
| VNET Group DRC |
| Neptune Insurance |
VNET Group and Neptune Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VNET Group and Neptune Insurance
The main advantage of trading using opposite VNET Group and Neptune Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group position performs unexpectedly, Neptune Insurance 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 Neptune Insurance will offset losses from the drop in Neptune Insurance's long position.| VNET Group vs. C3 Ai Inc | VNET Group vs. Globant SA | VNET Group vs. Innodata | VNET Group vs. CLARIVATE PLC |
| Neptune Insurance vs. BlackRock | Neptune Insurance vs. Main Street Capital | Neptune Insurance vs. Blackstone Group | Neptune Insurance vs. Ares Capital |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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