Correlation Between VinFast Auto and Repare Therapeutics
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and Repare 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 Repare 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 Repare Therapeutics, you can compare the effects of market volatilities on VinFast Auto and Repare 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 Repare Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and Repare Therapeutics.
Diversification Opportunities for VinFast Auto and Repare Therapeutics
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VinFast and Repare is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Repare Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repare 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 Repare Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repare Therapeutics has no effect on the direction of VinFast Auto i.e., VinFast Auto and Repare Therapeutics go up and down completely randomly.
Pair Corralation between VinFast Auto and Repare Therapeutics
Assuming the 90 days horizon VinFast Auto Ltd is expected to generate 0.95 times more return on investment than Repare Therapeutics. However, VinFast Auto Ltd is 1.05 times less risky than Repare Therapeutics. It trades about -0.02 of its potential returns per unit of risk. Repare Therapeutics is currently generating about -0.05 per unit of risk. If you would invest 40.00 in VinFast Auto Ltd on August 30, 2024 and sell it today you would lose (2.00) from holding VinFast Auto Ltd or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VinFast Auto Ltd vs. Repare Therapeutics
Performance |
| Timeline |
| VinFast Auto |
| Repare Therapeutics |
VinFast Auto and Repare Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and Repare Therapeutics
The main advantage of trading using opposite VinFast Auto and Repare Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, Repare 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 Repare Therapeutics will offset losses from the drop in Repare Therapeutics' long position.| VinFast Auto vs. NETGEAR | VinFast Auto vs. Zedge Inc | VinFast Auto vs. ArcelorMittal SA ADR | VinFast Auto vs. Integral Ad Science |
| Repare Therapeutics vs. Accolade | Repare Therapeutics vs. Nurix Therapeutics | Repare Therapeutics vs. 908 Devices | Repare Therapeutics vs. Relay Therapeutics |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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