Correlation Between Mesa Air and VinFast Auto
Can any of the company-specific risk be diversified away by investing in both Mesa Air 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 Mesa Air and VinFast Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesa Air Group and VinFast Auto Ltd, you can compare the effects of market volatilities on Mesa Air 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 Mesa Air with a short position of VinFast Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and VinFast Auto.
Diversification Opportunities for Mesa Air and VinFast Auto
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mesa and VinFast is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and VinFast Auto Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VinFast Auto and Mesa Air 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 Mesa Air Group 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 Mesa Air i.e., Mesa Air and VinFast Auto go up and down completely randomly.
Pair Corralation between Mesa Air and VinFast Auto
Given the investment horizon of 90 days Mesa Air is expected to generate 9.56 times less return on investment than VinFast Auto. But when comparing it to its historical volatility, Mesa Air Group is 2.77 times less risky than VinFast Auto. It trades about 0.02 of its potential returns per unit of risk. VinFast Auto Ltd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5.00 in VinFast Auto Ltd on September 19, 2024 and sell it today you would earn a total of 38.00 from holding VinFast Auto Ltd or generate 760.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.69% |
| Values | Daily Returns |
Mesa Air Group vs. VinFast Auto Ltd
Performance |
| Timeline |
| Mesa Air Group |
| VinFast Auto |
Mesa Air and VinFast Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and VinFast Auto
The main advantage of trading using opposite Mesa Air and VinFast Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air 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.| Mesa Air vs. Allegiant Travel | Mesa Air vs. Sun Country Airlines | Mesa Air vs. Frontier Group Holdings | Mesa Air vs. Azul SA |
| VinFast Auto vs. Asure Software | VinFast Auto vs. Mesa Air Group | VinFast Auto vs. Finnair Oyj | VinFast Auto vs. Mayfair Gold Corp |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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