Correlation Between VinFast Auto and Biodesix
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and Biodesix 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 VinFast Auto and Biodesix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VinFast Auto Ltd and Biodesix, you can compare the effects of market volatilities on VinFast Auto and Biodesix 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 VinFast Auto with a short position of Biodesix. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and Biodesix.
Diversification Opportunities for VinFast Auto and Biodesix
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VinFast and Biodesix is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Biodesix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biodesix and VinFast Auto 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 VinFast Auto Ltd are associated (or correlated) with Biodesix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biodesix has no effect on the direction of VinFast Auto i.e., VinFast Auto and Biodesix go up and down completely randomly.
Pair Corralation between VinFast Auto and Biodesix
Considering the 90-day investment horizon VinFast Auto Ltd is expected to generate 3.58 times more return on investment than Biodesix. However, VinFast Auto is 3.58 times more volatile than Biodesix. It trades about 0.03 of its potential returns per unit of risk. Biodesix is currently generating about 0.02 per unit of risk. If you would invest 1,045 in VinFast Auto Ltd on August 24, 2024 and sell it today you would lose (650.00) from holding VinFast Auto Ltd or give up 62.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 65.32% |
| Values | Daily Returns |
VinFast Auto Ltd vs. Biodesix
Performance |
| Timeline |
| VinFast Auto |
| Biodesix |
VinFast Auto and Biodesix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and Biodesix
The main advantage of trading using opposite VinFast Auto and Biodesix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, Biodesix 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 Biodesix will offset losses from the drop in Biodesix's long position.| VinFast Auto vs. Nio Class A | VinFast Auto vs. Xpeng Inc | VinFast Auto vs. Mullen Automotive | VinFast Auto vs. Tesla Inc |
| Biodesix vs. Aclaris Therapeutics | Biodesix vs. Castle Biosciences | Biodesix vs. Prenetics Global | Biodesix vs. DarioHealth 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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