Correlation Between VinFast Auto and First National
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and First National 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 First National 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 First National of, you can compare the effects of market volatilities on VinFast Auto and First National 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 First National. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and First National.
Diversification Opportunities for VinFast Auto and First National
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VinFast and First is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and First National of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First National 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 First National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First National has no effect on the direction of VinFast Auto i.e., VinFast Auto and First National go up and down completely randomly.
Pair Corralation between VinFast Auto and First National
Assuming the 90 days horizon VinFast Auto Ltd is expected to under-perform the First National. In addition to that, VinFast Auto is 4.21 times more volatile than First National of. It trades about -0.03 of its total potential returns per unit of risk. First National of is currently generating about 0.04 per unit of volatility. If you would invest 1,181,388 in First National of on August 24, 2024 and sell it today you would earn a total of 38,612 from holding First National of or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
VinFast Auto Ltd vs. First National of
Performance |
| Timeline |
| VinFast Auto |
| First National |
VinFast Auto and First National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and First National
The main advantage of trading using opposite VinFast Auto and First National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, First National 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 First National will offset losses from the drop in First National's long position.| VinFast Auto vs. PennantPark Floating Rate | VinFast Auto vs. Grocery Outlet Holding | VinFast Auto vs. Barings BDC | VinFast Auto vs. Mill City Ventures |
| First National vs. Washington Business Bank | First National vs. National Capital Bank | First National vs. Community Heritage Financial | First National vs. Citizens Financial 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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