Correlation Between Rivian Automotive and VinFast Auto
Can any of the company-specific risk be diversified away by investing in both Rivian Automotive 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 Rivian Automotive and VinFast Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rivian Automotive and VinFast Auto Ltd, you can compare the effects of market volatilities on Rivian Automotive 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 Rivian Automotive with a short position of VinFast Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rivian Automotive and VinFast Auto.
Diversification Opportunities for Rivian Automotive and VinFast Auto
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rivian and VinFast is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Rivian Automotive and VinFast Auto Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VinFast Auto and Rivian Automotive 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 Rivian Automotive 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 Rivian Automotive i.e., Rivian Automotive and VinFast Auto go up and down completely randomly.
Pair Corralation between Rivian Automotive and VinFast Auto
Given the investment horizon of 90 days Rivian Automotive is expected to generate 2.22 times more return on investment than VinFast Auto. However, Rivian Automotive is 2.22 times more volatile than VinFast Auto Ltd. It trades about 0.14 of its potential returns per unit of risk. VinFast Auto Ltd is currently generating about 0.16 per unit of risk. If you would invest 1,047 in Rivian Automotive on August 30, 2024 and sell it today you would earn a total of 175.00 from holding Rivian Automotive or generate 16.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rivian Automotive vs. VinFast Auto Ltd
Performance |
| Timeline |
| Rivian Automotive |
| VinFast Auto |
Rivian Automotive and VinFast Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rivian Automotive and VinFast Auto
The main advantage of trading using opposite Rivian Automotive and VinFast Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rivian Automotive 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.| Rivian Automotive vs. Nio Class A | Rivian Automotive vs. Xpeng Inc | Rivian Automotive vs. Mullen Automotive | Rivian Automotive vs. Tesla Inc |
| VinFast Auto vs. Old Republic International | VinFast Auto vs. Rumble Inc | VinFast Auto vs. Black Hills | VinFast Auto vs. Q2 Holdings |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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