Correlation Between VinFast Auto and Rain Therapeutics
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and Rain Therapeutics 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 Rain Therapeutics 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 Rain Therapeutics, you can compare the effects of market volatilities on VinFast Auto and Rain Therapeutics 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 Rain Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and Rain Therapeutics.
Diversification Opportunities for VinFast Auto and Rain Therapeutics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VinFast and Rain is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Rain Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rain Therapeutics 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 Rain Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rain Therapeutics has no effect on the direction of VinFast Auto i.e., VinFast Auto and Rain Therapeutics go up and down completely randomly.
Pair Corralation between VinFast Auto and Rain Therapeutics
If you would invest 37.00 in VinFast Auto Ltd on August 27, 2024 and sell it today you would earn a total of 0.00 from holding VinFast Auto Ltd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
VinFast Auto Ltd vs. Rain Therapeutics
Performance |
| Timeline |
| VinFast Auto |
| Rain Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VinFast Auto and Rain Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and Rain Therapeutics
The main advantage of trading using opposite VinFast Auto and Rain Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, Rain Therapeutics 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 Rain Therapeutics will offset losses from the drop in Rain Therapeutics' long position.| VinFast Auto vs. Nio Class A | VinFast Auto vs. Lucid Group | VinFast Auto vs. Tesla Inc | VinFast Auto vs. Mullen Automotive |
| Rain Therapeutics vs. Ocean Biomedical | Rain Therapeutics vs. Enveric Biosciences | Rain Therapeutics vs. Elevation Oncology | Rain Therapeutics vs. Hepion Pharmaceuticals |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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