Correlation Between VinFast Auto and Goodman
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and Goodman 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 Goodman 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 Goodman Group, you can compare the effects of market volatilities on VinFast Auto and Goodman 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 Goodman. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and Goodman.
Diversification Opportunities for VinFast Auto and Goodman
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VinFast and Goodman is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Goodman Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodman Group 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 Goodman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodman Group has no effect on the direction of VinFast Auto i.e., VinFast Auto and Goodman go up and down completely randomly.
Pair Corralation between VinFast Auto and Goodman
Assuming the 90 days horizon VinFast Auto Ltd is expected to under-perform the Goodman. In addition to that, VinFast Auto is 1.51 times more volatile than Goodman Group. It trades about -0.02 of its total potential returns per unit of risk. Goodman Group is currently generating about 0.05 per unit of volatility. If you would invest 2,315 in Goodman Group on September 1, 2024 and sell it today you would earn a total of 417.00 from holding Goodman Group or generate 18.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
VinFast Auto Ltd vs. Goodman Group
Performance |
| Timeline |
| VinFast Auto |
| Goodman Group |
VinFast Auto and Goodman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and Goodman
The main advantage of trading using opposite VinFast Auto and Goodman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, Goodman 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 Goodman will offset losses from the drop in Goodman's long position.| VinFast Auto vs. Nio Class A | VinFast Auto vs. Xpeng Inc | VinFast Auto vs. Tesla Inc | VinFast Auto vs. Li Auto |
| Goodman vs. Comstock Holding Companies | Goodman vs. St Joe Company | Goodman vs. Stratus Properties | Goodman vs. Mitsui Fudosan Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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