Correlation Between VNET Group and Schwab Target

Can any of the company-specific risk be diversified away by investing in both VNET Group and Schwab Target 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 Schwab Target 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 Schwab Target 2010, you can compare the effects of market volatilities on VNET Group and Schwab Target 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 Schwab Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and Schwab Target.

Diversification Opportunities for VNET Group and Schwab Target

0.69

Correlation Coefficient

VNET Group  Schwab Target

Poor diversification

The 3 months correlation between VNET and Schwab is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and Schwab Target 2010 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schwab Target 2010 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 Schwab Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schwab Target 2010 has no effect on the direction of VNET Group i.e., VNET Group and Schwab Target go up and down completely randomly.

Pair Corralation between VNET Group and Schwab Target

Given the investment horizon of 90 days VNET Group DRC is expected to generate 22.53 times more return on investment than Schwab Target. However, VNET Group is 22.53 times more volatile than Schwab Target 2010. It trades about 0.03 of its potential returns per unit of risk. Schwab Target 2010 is currently generating about 0.25 per unit of risk. If you would invest  792.00  in VNET Group DRC on May 14, 2025 and sell it today you would earn a total of  10.00  from holding VNET Group DRC or generate 1.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

VNET Group DRC  vs.  Schwab Target 2010

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 8 (%) 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.

Schwab Target 2010

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Schwab Target 2010 are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Schwab Target is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with VNET Group and Schwab Target

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

The idea behind VNET Group DRC and Schwab Target 2010 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 Global Correlations module to find global opportunities by holding instruments from different markets.