Correlation Between Fastly, and VNET Group

Can any of the company-specific risk be diversified away by investing in both Fastly, and VNET Group 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 Fastly, and VNET Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fastly, Class A and VNET Group DRC, you can compare the effects of market volatilities on Fastly, and VNET Group 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 Fastly, with a short position of VNET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastly, and VNET Group.

Diversification Opportunities for Fastly, and VNET Group

-0.52

Correlation Coefficient

Fastly,  VNET Group

Excellent diversification

The 3 months correlation between Fastly, and VNET is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Fastly, Class A 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 Fastly, 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 Fastly, Class A 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 Fastly, i.e., Fastly, and VNET Group go up and down completely randomly.

Pair Corralation between Fastly, and VNET Group

Given the investment horizon of 90 days Fastly, Class A is expected to generate 1.43 times more return on investment than VNET Group. However, Fastly, is 1.43 times more volatile than VNET Group DRC. It trades about 0.06 of its potential returns per unit of risk. VNET Group DRC is currently generating about -0.1 per unit of risk. If you would invest  905.00  in Fastly, Class A on October 2, 2025 and sell it today you would earn a total of  109.00  from holding Fastly, Class A or generate 12.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Fastly, Class A  vs.  VNET Group DRC

Fastly, Class A

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Fastly, Class A are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting essential indicators, Fastly, showed solid returns over the last few months and may actually be approaching a breakup point.

VNET Group DRC

Risk-Adjusted Performance

Weakest

Over the last 90 days VNET Group DRC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Fastly, and VNET Group

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

The idea behind Fastly, Class A and VNET Group DRC 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..