Correlation Between VinFast Auto and SCOR PK
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and SCOR PK 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 SCOR PK 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 SCOR PK, you can compare the effects of market volatilities on VinFast Auto and SCOR PK 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 SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and SCOR PK.
Diversification Opportunities for VinFast Auto and SCOR PK
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VinFast and SCOR is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK 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 SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of VinFast Auto i.e., VinFast Auto and SCOR PK go up and down completely randomly.
Pair Corralation between VinFast Auto and SCOR PK
Assuming the 90 days horizon VinFast Auto Ltd is expected to under-perform the SCOR PK. In addition to that, VinFast Auto is 2.29 times more volatile than SCOR PK. It trades about -0.05 of its total potential returns per unit of risk. SCOR PK is currently generating about -0.01 per unit of volatility. If you would invest 296.00 in SCOR PK on August 27, 2024 and sell it today you would lose (46.00) from holding SCOR PK or give up 15.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
VinFast Auto Ltd vs. SCOR PK
Performance |
| Timeline |
| VinFast Auto |
| SCOR PK |
VinFast Auto and SCOR PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and SCOR PK
The main advantage of trading using opposite VinFast Auto and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK's long position.| VinFast Auto vs. Nio Class A | VinFast Auto vs. Rivian Automotive | VinFast Auto vs. Lucid Group | VinFast Auto vs. Tesla Inc |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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