Correlation Between VNET Group and ExlService Holdings
Can any of the company-specific risk be diversified away by investing in both VNET Group and ExlService Holdings 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 ExlService Holdings 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 ExlService Holdings, you can compare the effects of market volatilities on VNET Group and ExlService Holdings 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 ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and ExlService Holdings.
Diversification Opportunities for VNET Group and ExlService Holdings
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VNET and ExlService is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings 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 ExlService Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExlService Holdings has no effect on the direction of VNET Group i.e., VNET Group and ExlService Holdings go up and down completely randomly.
Pair Corralation between VNET Group and ExlService Holdings
Given the investment horizon of 90 days VNET Group DRC is expected to generate 3.56 times more return on investment than ExlService Holdings. However, VNET Group is 3.56 times more volatile than ExlService Holdings. It trades about 0.06 of its potential returns per unit of risk. ExlService Holdings is currently generating about -0.08 per unit of risk. If you would invest 683.00 in VNET Group DRC on May 6, 2025 and sell it today you would earn a total of 99.00 from holding VNET Group DRC or generate 14.49% 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. ExlService Holdings
Performance |
Timeline |
VNET Group DRC |
ExlService Holdings |
VNET Group and ExlService Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VNET Group and ExlService Holdings
The main advantage of trading using opposite VNET Group and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group position performs unexpectedly, ExlService Holdings 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 ExlService Holdings will offset losses from the drop in ExlService Holdings' long position.VNET Group vs. GDS Holdings | VNET Group vs. ExlService Holdings | VNET Group vs. Gartner | VNET Group vs. Huazhu Group |
ExlService Holdings vs. WNS Holdings | ExlService Holdings vs. Genpact Limited | ExlService Holdings vs. ASGN Inc | ExlService Holdings 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |