Correlation Between VNET Group and 1812 Brewing

Can any of the company-specific risk be diversified away by investing in both VNET Group and 1812 Brewing 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 1812 Brewing 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 1812 Brewing, you can compare the effects of market volatilities on VNET Group and 1812 Brewing 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 1812 Brewing. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and 1812 Brewing.

Diversification Opportunities for VNET Group and 1812 Brewing

-0.58

Correlation Coefficient

VNET Group  1812 Brewing

Excellent diversification

The 3 months correlation between VNET and 1812 is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and 1812 Brewing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1812 Brewing 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 1812 Brewing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1812 Brewing has no effect on the direction of VNET Group i.e., VNET Group and 1812 Brewing go up and down completely randomly.

Pair Corralation between VNET Group and 1812 Brewing

Given the investment horizon of 90 days VNET Group DRC is expected to generate 0.35 times more return on investment than 1812 Brewing. However, VNET Group DRC is 2.89 times less risky than 1812 Brewing. It trades about 0.03 of its potential returns per unit of risk. 1812 Brewing is currently generating about -0.21 per unit of risk. If you would invest  795.00  in VNET Group DRC on May 12, 2025 and sell it today you would earn a total of  3.00  from holding VNET Group DRC or generate 0.38% 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.  1812 Brewing

VNET Group DRC

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in VNET Group DRC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, VNET Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

1812 Brewing

Risk-Adjusted Performance

Weakest

Over the last 90 days 1812 Brewing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with VNET Group and 1812 Brewing

The main advantage of trading using opposite VNET Group and 1812 Brewing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group position performs unexpectedly, 1812 Brewing 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 1812 Brewing will offset losses from the drop in 1812 Brewing's long position.

The idea behind VNET Group DRC and 1812 Brewing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.