Correlation Between VNET Group and Snowflake
Can any of the company-specific risk be diversified away by investing in both VNET Group and Snowflake 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 Snowflake 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 Snowflake, you can compare the effects of market volatilities on VNET Group and Snowflake 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 Snowflake. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and Snowflake.
Diversification Opportunities for VNET Group and Snowflake
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VNET and Snowflake is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and Snowflake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snowflake 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 Snowflake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snowflake has no effect on the direction of VNET Group i.e., VNET Group and Snowflake go up and down completely randomly.
Pair Corralation between VNET Group and Snowflake
Given the investment horizon of 90 days VNET Group DRC is expected to generate 1.3 times more return on investment than Snowflake. However, VNET Group is 1.3 times more volatile than Snowflake. It trades about 0.04 of its potential returns per unit of risk. Snowflake is currently generating about -0.28 per unit of risk. If you would invest 970.00 in VNET Group DRC on November 8, 2025 and sell it today you would earn a total of 42.00 from holding VNET Group DRC or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VNET Group DRC vs. Snowflake
Performance |
| Timeline |
| VNET Group DRC |
| Snowflake |
VNET Group and Snowflake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VNET Group and Snowflake
The main advantage of trading using opposite VNET Group and Snowflake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group position performs unexpectedly, Snowflake 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 Snowflake will offset losses from the drop in Snowflake's long position.| VNET Group vs. C3 Ai Inc | VNET Group vs. Globant SA | VNET Group vs. Innodata | VNET Group vs. CLARIVATE PLC |
| Snowflake vs. MicroStrategy Incorporated | Snowflake vs. CoreWeave Class A | Snowflake vs. Cadence Design Systems | Snowflake vs. Synopsys |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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