Correlation Between VNET Group and N1 Technologies

Can any of the company-specific risk be diversified away by investing in both VNET Group and N1 Technologies 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 N1 Technologies 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 N1 Technologies, you can compare the effects of market volatilities on VNET Group and N1 Technologies 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 N1 Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and N1 Technologies.

Diversification Opportunities for VNET Group and N1 Technologies

0.0

Correlation Coefficient

VNET Group  N1 Technologies

Pay attention - limited upside

The 3 months correlation between VNET and NTCHF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and N1 Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N1 Technologies 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 N1 Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N1 Technologies has no effect on the direction of VNET Group i.e., VNET Group and N1 Technologies go up and down completely randomly.

Pair Corralation between VNET Group and N1 Technologies

If you would invest  639.00  in VNET Group DRC on May 13, 2025 and sell it today you would earn a total of  159.00  from holding VNET Group DRC or generate 24.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

VNET Group DRC  vs.  N1 Technologies

VNET Group DRC

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in VNET Group DRC are ranked lower than 7 (%) 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.

N1 Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days N1 Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, N1 Technologies is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with VNET Group and N1 Technologies

The main advantage of trading using opposite VNET Group and N1 Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group position performs unexpectedly, N1 Technologies 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 N1 Technologies will offset losses from the drop in N1 Technologies' long position.

The idea behind VNET Group DRC and N1 Technologies 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.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.