Correlation Between VinFast Auto and Superior Industries
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and Superior Industries 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 Superior Industries 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 Superior Industries International, you can compare the effects of market volatilities on VinFast Auto and Superior Industries 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 Superior Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and Superior Industries.
Diversification Opportunities for VinFast Auto and Superior Industries
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VinFast and Superior is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Superior Industries Internatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Industries 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 Superior Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Industries has no effect on the direction of VinFast Auto i.e., VinFast Auto and Superior Industries go up and down completely randomly.
Pair Corralation between VinFast Auto and Superior Industries
Considering the 90-day investment horizon VinFast Auto Ltd is expected to generate 5.29 times more return on investment than Superior Industries. However, VinFast Auto is 5.29 times more volatile than Superior Industries International. It trades about 0.03 of its potential returns per unit of risk. Superior Industries International is currently generating about -0.02 per unit of risk. If you would invest 1,045 in VinFast Auto Ltd on September 12, 2024 and sell it today you would lose (588.00) from holding VinFast Auto Ltd or give up 56.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 89.81% |
| Values | Daily Returns |
VinFast Auto Ltd vs. Superior Industries Internatio
Performance |
| Timeline |
| VinFast Auto |
| Superior Industries |
VinFast Auto and Superior Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and Superior Industries
The main advantage of trading using opposite VinFast Auto and Superior Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, Superior Industries 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 Superior Industries will offset losses from the drop in Superior Industries' long position.| VinFast Auto vs. SmartStop Self Storage | VinFast Auto vs. Kaltura | VinFast Auto vs. Infosys Ltd ADR | VinFast Auto vs. FiscalNote Holdings |
| Superior Industries vs. Monro Muffler Brake | Superior Industries vs. Dorman Products | Superior Industries vs. Motorcar Parts of | Superior Industries vs. Gentherm |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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