Correlation Between ArcelorMittal and VinFast Auto
Can any of the company-specific risk be diversified away by investing in both ArcelorMittal 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 ArcelorMittal and VinFast Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ArcelorMittal SA ADR and VinFast Auto Ltd, you can compare the effects of market volatilities on ArcelorMittal 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 ArcelorMittal with a short position of VinFast Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of ArcelorMittal and VinFast Auto.
Diversification Opportunities for ArcelorMittal and VinFast Auto
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ArcelorMittal and VinFast is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ArcelorMittal SA ADR and VinFast Auto Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VinFast Auto and ArcelorMittal 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 ArcelorMittal SA ADR 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 ArcelorMittal i.e., ArcelorMittal and VinFast Auto go up and down completely randomly.
Pair Corralation between ArcelorMittal and VinFast Auto
Allowing for the 90-day total investment horizon ArcelorMittal SA ADR is expected to generate 0.24 times more return on investment than VinFast Auto. However, ArcelorMittal SA ADR is 4.15 times less risky than VinFast Auto. It trades about 0.03 of its potential returns per unit of risk. VinFast Auto Ltd is currently generating about -0.01 per unit of risk. If you would invest 2,273 in ArcelorMittal SA ADR on September 1, 2024 and sell it today you would earn a total of 255.00 from holding ArcelorMittal SA ADR or generate 11.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ArcelorMittal SA ADR vs. VinFast Auto Ltd
Performance |
| Timeline |
| ArcelorMittal SA ADR |
| VinFast Auto |
ArcelorMittal and VinFast Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ArcelorMittal and VinFast Auto
The main advantage of trading using opposite ArcelorMittal and VinFast Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ArcelorMittal 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.| ArcelorMittal vs. Olympic Steel | ArcelorMittal vs. Ternium SA ADR | ArcelorMittal vs. Gerdau SA ADR | ArcelorMittal vs. POSCO Holdings |
| VinFast Auto vs. Nio Class A | VinFast Auto vs. Xpeng Inc | VinFast Auto vs. Tesla Inc | 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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