Correlation Between VNET Group and 1290 Doubleline

Can any of the company-specific risk be diversified away by investing in both VNET Group and 1290 Doubleline 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 1290 Doubleline 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 1290 Doubleline Dynamic, you can compare the effects of market volatilities on VNET Group and 1290 Doubleline 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 1290 Doubleline. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and 1290 Doubleline.

Diversification Opportunities for VNET Group and 1290 Doubleline

0.63

Correlation Coefficient

VNET Group  1290 Doubleline

Poor diversification

The 3 months correlation between VNET and 1290 is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and 1290 Doubleline Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1290 Doubleline Dynamic 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 1290 Doubleline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1290 Doubleline Dynamic has no effect on the direction of VNET Group i.e., VNET Group and 1290 Doubleline go up and down completely randomly.

Pair Corralation between VNET Group and 1290 Doubleline

Given the investment horizon of 90 days VNET Group DRC is expected to generate 20.54 times more return on investment than 1290 Doubleline. However, VNET Group is 20.54 times more volatile than 1290 Doubleline Dynamic. It trades about 0.09 of its potential returns per unit of risk. 1290 Doubleline Dynamic is currently generating about 0.27 per unit of risk. 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	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

VNET Group DRC  vs.  1290 Doubleline Dynamic

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.

1290 Doubleline Dynamic

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in 1290 Doubleline Dynamic are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, 1290 Doubleline 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 1290 Doubleline

The main advantage of trading using opposite VNET Group and 1290 Doubleline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group position performs unexpectedly, 1290 Doubleline 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 1290 Doubleline will offset losses from the drop in 1290 Doubleline's long position.

The idea behind VNET Group DRC and 1290 Doubleline Dynamic 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.