Correlation Between VNET Group and Sharp
Can any of the company-specific risk be diversified away by investing in both VNET Group and Sharp 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 Sharp 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 Sharp, you can compare the effects of market volatilities on VNET Group and Sharp 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 Sharp. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and Sharp.
Diversification Opportunities for VNET Group and Sharp
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VNET and Sharp is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and Sharp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharp 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 Sharp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharp has no effect on the direction of VNET Group i.e., VNET Group and Sharp go up and down completely randomly.
Pair Corralation between VNET Group and Sharp
Given the investment horizon of 90 days VNET Group DRC is expected to generate 1.18 times more return on investment than Sharp. However, VNET Group is 1.18 times more volatile than Sharp. It trades about 0.2 of its potential returns per unit of risk. Sharp is currently generating about -0.12 per unit of risk. If you would invest 867.00 in VNET Group DRC on November 18, 2025 and sell it today you would earn a total of 511.00 from holding VNET Group DRC or generate 58.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
VNET Group DRC vs. Sharp
Performance |
| Timeline |
| VNET Group DRC |
| Sharp |
VNET Group and Sharp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VNET Group and Sharp
The main advantage of trading using opposite VNET Group and Sharp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group position performs unexpectedly, Sharp 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 Sharp will offset losses from the drop in Sharp's long position.| VNET Group vs. C3 Ai Inc | VNET Group vs. Globant SA | VNET Group vs. Innodata | VNET Group vs. CLARIVATE PLC |
| Sharp vs. TCL Electronics Holdings | Sharp vs. AU Optronics Corp | Sharp vs. Renishaw plc | Sharp vs. Sopra Steria Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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