Correlation Between VinFast Auto and Lucid
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and Lucid 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 Lucid 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 Lucid Group, you can compare the effects of market volatilities on VinFast Auto and Lucid 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 Lucid. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and Lucid.
Diversification Opportunities for VinFast Auto and Lucid
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VinFast and Lucid is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Lucid Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucid 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 Lucid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucid Group has no effect on the direction of VinFast Auto i.e., VinFast Auto and Lucid go up and down completely randomly.
Pair Corralation between VinFast Auto and Lucid
Assuming the 90 days horizon VinFast Auto Ltd is expected to under-perform the Lucid. In addition to that, VinFast Auto is 1.36 times more volatile than Lucid Group. It trades about -0.02 of its total potential returns per unit of risk. Lucid Group is currently generating about -0.02 per unit of volatility. If you would invest 284.00 in Lucid Group on August 29, 2024 and sell it today you would lose (67.00) from holding Lucid Group or give up 23.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VinFast Auto Ltd vs. Lucid Group
Performance |
| Timeline |
| VinFast Auto |
| Lucid Group |
VinFast Auto and Lucid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and Lucid
The main advantage of trading using opposite VinFast Auto and Lucid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, Lucid 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 Lucid will offset losses from the drop in Lucid's long position.| VinFast Auto vs. NETGEAR | VinFast Auto vs. Zedge Inc | VinFast Auto vs. ArcelorMittal SA ADR | VinFast Auto vs. Integral Ad Science |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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