Correlation Between VNET Group and VEEA
Can any of the company-specific risk be diversified away by investing in both VNET Group and VEEA 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 VEEA 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 VEEA, you can compare the effects of market volatilities on VNET Group and VEEA 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 VEEA. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and VEEA.
Diversification Opportunities for VNET Group and VEEA
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between VNET and VEEA is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and VEEA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VEEA 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 VEEA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VEEA has no effect on the direction of VNET Group i.e., VNET Group and VEEA go up and down completely randomly.
Pair Corralation between VNET Group and VEEA
Given the investment horizon of 90 days VNET Group DRC is expected to generate 0.28 times more return on investment than VEEA. However, VNET Group DRC is 3.56 times less risky than VEEA. It trades about 0.12 of its potential returns per unit of risk. VEEA is currently generating about -0.06 per unit of risk. If you would invest 184.00 in VNET Group DRC on August 25, 2024 and sell it today you would earn a total of 191.00 from holding VNET Group DRC or generate 103.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 41.73% |
| Values | Daily Returns |
VNET Group DRC vs. VEEA
Performance |
| Timeline |
| VNET Group DRC |
| VEEA |
VNET Group and VEEA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VNET Group and VEEA
The main advantage of trading using opposite VNET Group and VEEA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group position performs unexpectedly, VEEA 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 VEEA will offset losses from the drop in VEEA's long position.| VNET Group vs. CLARIVATE PLC | VNET Group vs. WNS Holdings | VNET Group vs. GDS Holdings | VNET Group vs. CACI International |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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