Correlation Between VinFast Auto and Volcon
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and Volcon 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 Volcon 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 Volcon Inc, you can compare the effects of market volatilities on VinFast Auto and Volcon 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 Volcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and Volcon.
Diversification Opportunities for VinFast Auto and Volcon
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VinFast and Volcon is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Volcon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volcon Inc 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 Volcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volcon Inc has no effect on the direction of VinFast Auto i.e., VinFast Auto and Volcon go up and down completely randomly.
Pair Corralation between VinFast Auto and Volcon
Considering the 90-day investment horizon VinFast Auto Ltd is expected to generate 0.73 times more return on investment than Volcon. However, VinFast Auto Ltd is 1.38 times less risky than Volcon. It trades about 0.05 of its potential returns per unit of risk. Volcon Inc is currently generating about -0.12 per unit of risk. If you would invest 377.00 in VinFast Auto Ltd on October 20, 2024 and sell it today you would earn a total of 35.00 from holding VinFast Auto Ltd or generate 9.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VinFast Auto Ltd vs. Volcon Inc
Performance |
| Timeline |
| VinFast Auto |
| Volcon Inc |
VinFast Auto and Volcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and Volcon
The main advantage of trading using opposite VinFast Auto and Volcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, Volcon 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 Volcon will offset losses from the drop in Volcon's long position.| VinFast Auto vs. Mediag3 | VinFast Auto vs. Academy Sports Outdoors | VinFast Auto vs. Canaf Investments | VinFast Auto vs. Flutter Entertainment plc |
| Volcon vs. Mobileye Global Class | Volcon vs. Innoviz Technologies | Volcon vs. Aeva Technologies | Volcon vs. Hyliion Holdings 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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