Correlation Between VNET Group and IPG Photonics

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

Diversification Opportunities for VNET Group and IPG Photonics

0.62
  Correlation Coefficient

Poor diversification

The 3 months correlation between VNET and IPG is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and IPG Photonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPG Photonics 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 IPG Photonics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IPG Photonics has no effect on the direction of VNET Group i.e., VNET Group and IPG Photonics go up and down completely randomly.

Pair Corralation between VNET Group and IPG Photonics

Given the investment horizon of 90 days VNET Group is expected to generate 1.85 times less return on investment than IPG Photonics. But when comparing it to its historical volatility, VNET Group DRC is 1.14 times less risky than IPG Photonics. It trades about 0.08 of its potential returns per unit of risk. IPG Photonics is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you had invested $ 7,778 in IPG Photonics on December 14, 2025 and sold it today you would have earned a total of $ 3,317 from holding IPG Photonics or generated 42.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

VNET Group DRC  vs.  IPG Photonics

 Performance 
       Timeline  
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
IPG Photonics 
Risk-Adjusted Performance
Moderate
 
Weak
 
Strong
Compared with the broader market, risk-adjusted returns on IPG Photonics rank lower than 10% 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. Even with relatively unfluctuating technical and fundamental indicators, IPG Photonics reported solid returns over the last few months and may actually be approaching a breakup point. ...more

VNET Group and IPG Photonics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with VNET Group and IPG Photonics

A paired position in VNET Group and IPG Photonics 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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