Correlation Between Mayfair Gold and VinFast Auto
Can any of the company-specific risk be diversified away by investing in both Mayfair Gold 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 Mayfair Gold and VinFast Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mayfair Gold Corp and VinFast Auto Ltd, you can compare the effects of market volatilities on Mayfair Gold 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 Mayfair Gold with a short position of VinFast Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayfair Gold and VinFast Auto.
Diversification Opportunities for Mayfair Gold and VinFast Auto
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mayfair and VinFast is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mayfair Gold Corp and VinFast Auto Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VinFast Auto and Mayfair Gold 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 Mayfair Gold Corp 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 Mayfair Gold i.e., Mayfair Gold and VinFast Auto go up and down completely randomly.
Pair Corralation between Mayfair Gold and VinFast Auto
Assuming the 90 days horizon Mayfair Gold is expected to generate 30.37 times less return on investment than VinFast Auto. But when comparing it to its historical volatility, Mayfair Gold Corp is 7.05 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 7.01 in VinFast Auto Ltd on September 19, 2024 and sell it today you would earn a total of 31.99 from holding VinFast Auto Ltd or generate 456.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.26% |
| Values | Daily Returns |
Mayfair Gold Corp vs. VinFast Auto Ltd
Performance |
| Timeline |
| Mayfair Gold Corp |
| VinFast Auto |
Mayfair Gold and VinFast Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mayfair Gold and VinFast Auto
The main advantage of trading using opposite Mayfair Gold and VinFast Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayfair Gold 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.| Mayfair Gold vs. Agnico Eagle Mines | Mayfair Gold vs. B2Gold Corp | Mayfair Gold vs. Pan American Silver | Mayfair Gold vs. Gold Fields Ltd |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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