Correlation Between VNET Group and SAIHEAT

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

Diversification Opportunities for VNET Group and SAIHEAT

0.09

Correlation Coefficient

VNET Group  SAIHEAT

Significant diversification

The 3 months correlation between VNET and SAIHEAT is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and SAIHEAT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIHEAT Limited 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 SAIHEAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIHEAT Limited has no effect on the direction of VNET Group i.e., VNET Group and SAIHEAT go up and down completely randomly.

Pair Corralation between VNET Group and SAIHEAT

Given the investment horizon of 90 days VNET Group is expected to generate 1.73 times less return on investment than SAIHEAT. But when comparing it to its historical volatility, VNET Group DRC is 2.44 times less risky than SAIHEAT. It trades about 0.2 of its potential returns per unit of risk. SAIHEAT Limited is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  12.00  in SAIHEAT Limited on April 5, 2025 and sell it today you would earn a total of  2.00  from holding SAIHEAT Limited or generate 16.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	66.67%
Values	Daily Returns

VNET Group DRC  vs.  SAIHEAT Limited

VNET Group DRC

Risk-Adjusted Performance

Modest

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 unsteady technical and fundamental indicators, VNET Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

SAIHEAT Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SAIHEAT Limited are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical indicators, SAIHEAT showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VNET Group and SAIHEAT

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

The idea behind VNET Group DRC and SAIHEAT Limited 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.