Correlation Between VNET Group and VeriSign
Can any of the company-specific risk be diversified away by investing in both VNET Group and VeriSign 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 VeriSign 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 VeriSign, you can compare the effects of market volatilities on VNET Group and VeriSign 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 VeriSign. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and VeriSign.
Diversification Opportunities for VNET Group and VeriSign
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VNET and VeriSign is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and VeriSign in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VeriSign 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 VeriSign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VeriSign has no effect on the direction of VNET Group i.e., VNET Group and VeriSign go up and down completely randomly.
Pair Corralation between VNET Group and VeriSign
Given the investment horizon of 90 days VNET Group DRC is expected to generate 2.68 times more return on investment than VeriSign. However, VNET Group is 2.68 times more volatile than VeriSign. It trades about 0.2 of its potential returns per unit of risk. VeriSign is currently generating about -0.13 per unit of risk. If you would invest 858.00 in VNET Group DRC on November 16, 2025 and sell it today you would earn a total of 522.00 from holding VNET Group DRC or generate 60.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VNET Group DRC vs. VeriSign
Performance |
| Timeline |
| VNET Group DRC |
| VeriSign |
VNET Group and VeriSign Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VNET Group and VeriSign
The main advantage of trading using opposite VNET Group and VeriSign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group position performs unexpectedly, VeriSign 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 VeriSign will offset losses from the drop in VeriSign's long position.| VNET Group vs. C3 Ai Inc | VNET Group vs. Globant SA | VNET Group vs. Innodata | VNET Group vs. CLARIVATE PLC |
| VeriSign vs. Check Point Software | VeriSign vs. Godaddy | VeriSign vs. Samsara | VeriSign vs. Affirm Holdings |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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