Correlation Between Amer Sports, and VinFast Auto
Can any of the company-specific risk be diversified away by investing in both Amer Sports, and VinFast Auto 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 Amer Sports, and VinFast Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Sports, and VinFast Auto Ltd, you can compare the effects of market volatilities on Amer Sports, and VinFast Auto 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 Amer Sports, with a short position of VinFast Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Sports, and VinFast Auto.
Diversification Opportunities for Amer Sports, and VinFast Auto
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amer and VinFast is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and VinFast Auto Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VinFast Auto and Amer Sports, 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 Amer Sports, are associated (or correlated) with VinFast Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VinFast Auto has no effect on the direction of Amer Sports, i.e., Amer Sports, and VinFast Auto go up and down completely randomly.
Pair Corralation between Amer Sports, and VinFast Auto
Allowing for the 90-day total investment horizon Amer Sports, is expected to generate 5.08 times less return on investment than VinFast Auto. But when comparing it to its historical volatility, Amer Sports, is 6.13 times less risky than VinFast Auto. It trades about 0.11 of its potential returns per unit of risk. VinFast Auto Ltd is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3.31 in VinFast Auto Ltd on August 30, 2024 and sell it today you would earn a total of 34.69 from holding VinFast Auto Ltd or generate 1048.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 49.53% |
| Values | Daily Returns |
Amer Sports, vs. VinFast Auto Ltd
Performance |
| Timeline |
| Amer Sports, |
| VinFast Auto |
Amer Sports, and VinFast Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amer Sports, and VinFast Auto
The main advantage of trading using opposite Amer Sports, and VinFast Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Sports, position performs unexpectedly, VinFast Auto 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 VinFast Auto will offset losses from the drop in VinFast Auto's long position.| Amer Sports, vs. Cedar Realty Trust | Amer Sports, vs. Glacier Bancorp | Amer Sports, vs. ATRenew Inc DRC | Amer Sports, vs. Lululemon Athletica |
| VinFast Auto vs. Ford Motor | VinFast Auto vs. General Motors | VinFast Auto vs. Goodyear Tire Rubber | VinFast Auto vs. Li Auto |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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