Correlation Between VNET Group and Rexel SA
Can any of the company-specific risk be diversified away by investing in both VNET Group and Rexel SA 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 Rexel SA 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 Rexel SA, you can compare the effects of market volatilities on VNET Group and Rexel SA 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 Rexel SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and Rexel SA.
Diversification Opportunities for VNET Group and Rexel SA
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VNET and Rexel is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and Rexel SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rexel SA 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 Rexel SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rexel SA has no effect on the direction of VNET Group i.e., VNET Group and Rexel SA go up and down completely randomly.
Pair Corralation between VNET Group and Rexel SA
Given the investment horizon of 90 days VNET Group DRC is expected to generate 2.55 times more return on investment than Rexel SA. However, VNET Group is 2.55 times more volatile than Rexel SA. It trades about 0.09 of its potential returns per unit of risk. Rexel SA is currently generating about 0.11 per unit of risk. If you would invest 897.00 in VNET Group DRC on December 1, 2025 and sell it today you would earn a total of 181.00 from holding VNET Group DRC or generate 20.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VNET Group DRC vs. Rexel SA
Performance |
| Timeline |
| VNET Group DRC |
| Rexel SA |
VNET Group and Rexel SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VNET Group and Rexel SA
The main advantage of trading using opposite VNET Group and Rexel SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group position performs unexpectedly, Rexel SA 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 Rexel SA will offset losses from the drop in Rexel SA's long position.| VNET Group vs. Paymentus Holdings | VNET Group vs. NIQ Global Intelligence | VNET Group vs. Science Applications International | VNET Group vs. Paysafe |
| Rexel SA vs. Sunny Optical Technology | Rexel SA vs. Capcom Co | Rexel SA vs. BYD Electronic | Rexel SA vs. Capcom Co Ltd |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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