Correlation Between VinFast Auto and Xenetic Biosciences
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and Xenetic Biosciences 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 Xenetic Biosciences 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 Xenetic Biosciences, you can compare the effects of market volatilities on VinFast Auto and Xenetic Biosciences 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 Xenetic Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and Xenetic Biosciences.
Diversification Opportunities for VinFast Auto and Xenetic Biosciences
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VinFast and Xenetic is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Xenetic Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenetic Biosciences 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 Xenetic Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenetic Biosciences has no effect on the direction of VinFast Auto i.e., VinFast Auto and Xenetic Biosciences go up and down completely randomly.
Pair Corralation between VinFast Auto and Xenetic Biosciences
If you would invest 41.00 in VinFast Auto Ltd on August 29, 2024 and sell it today you would lose (1.00) from holding VinFast Auto Ltd or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
VinFast Auto Ltd vs. Xenetic Biosciences
Performance |
| Timeline |
| VinFast Auto |
| Xenetic Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VinFast Auto and Xenetic Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and Xenetic Biosciences
The main advantage of trading using opposite VinFast Auto and Xenetic Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, Xenetic Biosciences 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 Xenetic Biosciences will offset losses from the drop in Xenetic Biosciences' 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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