Correlation Between PagSeguro Digital and VNET Group

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Can company-specific risk be reduced by holding PagSeguro Digital and VNET Group DRC together? Use this page to interpret how PagSeguro Digital and VNET Group DRC interact and how much diversifiable risk remains.
Evaluate how PagSeguro Digital and VNET Group DRC react to market stress to decide if the pair supports your risk target. You can also test a long PagSeguro Digital and short VNET Group structure to evaluate relative-value behavior. Review volatility patterns in PagSeguro Digital and VNET Group. Go to your portfolio center

Diversification Opportunities for PagSeguro Digital and VNET Group

0.61
  Correlation Coefficient

Poor diversification

The 3 months correlation between PagSeguro and VNET is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding PagSeguro Digital and VNET Group DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VNET Group DRC and PagSeguro Digital 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 PagSeguro Digital are associated (or correlated) with VNET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VNET Group DRC has no effect on the direction of PagSeguro Digital i.e., PagSeguro Digital and VNET Group go up and down completely randomly.

Pair Corralation between PagSeguro Digital and VNET Group

Given the investment horizon of 90 days PagSeguro Digital is expected to under-perform the VNET Group. But the stock apears to be less risky and, when comparing its historical volatility, PagSeguro Digital is 1.66 times less risky than VNET Group. The stock trades about -0.01 of its potential returns per unit of risk. The VNET Group DRC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you had invested $ 891.00 in VNET Group DRC on December 15, 2025 and sold it today you would have earned a total of $ 160.00 from holding VNET Group DRC or generated 17.96% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

PagSeguro Digital  vs.  VNET Group DRC

 Performance 
       Timeline  
PagSeguro Digital 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, PagSeguro Digital generated negative risk-adjusted returns and added little value for investors with long positions. The result matters because weak risk-adjusted return can persist even when isolated price moves briefly look constructive. In spite of comparatively stable technical and fundamental indicators, PagSeguro Digital is not utilizing all of its potential. The current price uproar may contribute to short-horizon losses for private investors. ...more
VNET Group DRC 
Risk-Adjusted Performance
Contained
 
Weak
 
Strong
Compared with the broader market, risk-adjusted returns on VNET Group DRC rank lower than 6% of all global equities and portfolios over the last 90 days. This score becomes more useful when investors compare it with downside risk, Sharpe Ratio, and current trend stability. In spite of comparatively unfluctuating technical and fundamental indicators, VNET Group unveiled solid returns over the last few months and may actually be approaching a breakup point. ...more

PagSeguro Digital and VNET Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PagSeguro Digital and VNET Group

A paired position in PagSeguro Digital and VNET Group is useful when investors want a more relative-value expression than a simple directional trade. The stronger process checks whether the correlation is stable enough to justify the hedge logic before the trade is sized.
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The information on this page should be treated as a complementary input when building or adjusting a diversified portfolio. The stronger workflow is to validate these signals with other models before acting. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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