Correlation Between VinFast Auto and Hookipa Pharma
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and Hookipa Pharma 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 Hookipa Pharma 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 Hookipa Pharma, you can compare the effects of market volatilities on VinFast Auto and Hookipa Pharma 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 Hookipa Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and Hookipa Pharma.
Diversification Opportunities for VinFast Auto and Hookipa Pharma
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VinFast and Hookipa is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Hookipa Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hookipa Pharma 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 Hookipa Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hookipa Pharma has no effect on the direction of VinFast Auto i.e., VinFast Auto and Hookipa Pharma go up and down completely randomly.
Pair Corralation between VinFast Auto and Hookipa Pharma
Considering the 90-day investment horizon VinFast Auto Ltd is expected to generate 0.52 times more return on investment than Hookipa Pharma. However, VinFast Auto Ltd is 1.91 times less risky than Hookipa Pharma. It trades about 0.01 of its potential returns per unit of risk. Hookipa Pharma is currently generating about -0.62 per unit of risk. If you would invest 394.00 in VinFast Auto Ltd on August 27, 2024 and sell it today you would lose (1.00) from holding VinFast Auto Ltd or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VinFast Auto Ltd vs. Hookipa Pharma
Performance |
| Timeline |
| VinFast Auto |
| Hookipa Pharma |
VinFast Auto and Hookipa Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and Hookipa Pharma
The main advantage of trading using opposite VinFast Auto and Hookipa Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, Hookipa Pharma 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 Hookipa Pharma will offset losses from the drop in Hookipa Pharma's long position.| VinFast Auto vs. Omni Health | VinFast Auto vs. Xponential Fitness | VinFast Auto vs. SunLink Health Systems | VinFast Auto vs. Centessa Pharmaceuticals PLC |
| Hookipa Pharma vs. Mereo BioPharma Group | Hookipa Pharma vs. Terns Pharmaceuticals | Hookipa Pharma vs. PDS Biotechnology Corp | Hookipa Pharma vs. Inozyme Pharma |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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