Correlation Between VinFast Auto and LianBio ADR
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and LianBio ADR 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 LianBio ADR 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 LianBio ADR, you can compare the effects of market volatilities on VinFast Auto and LianBio ADR 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 LianBio ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and LianBio ADR.
Diversification Opportunities for VinFast Auto and LianBio ADR
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VinFast and LianBio is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and LianBio ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianBio ADR 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 LianBio ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianBio ADR has no effect on the direction of VinFast Auto i.e., VinFast Auto and LianBio ADR go up and down completely randomly.
Pair Corralation between VinFast Auto and LianBio ADR
If you would invest 37.00 in VinFast Auto Ltd on August 28, 2024 and sell it today you would earn a total of 3.00 from holding VinFast Auto Ltd or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
VinFast Auto Ltd vs. LianBio ADR
Performance |
| Timeline |
| VinFast Auto |
| LianBio ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VinFast Auto and LianBio ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and LianBio ADR
The main advantage of trading using opposite VinFast Auto and LianBio ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, LianBio ADR 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 LianBio ADR will offset losses from the drop in LianBio ADR's long position.| VinFast Auto vs. Tesla Inc | VinFast Auto vs. Mullen Automotive | VinFast Auto vs. BYD Company Limited | VinFast Auto vs. Ford Motor |
| LianBio ADR vs. Sensei Biotherapeutics | LianBio ADR vs. NextCure | LianBio ADR vs. Nuvation Bio | LianBio ADR vs. Inozyme Pharma |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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