Correlation Between ZEEKR Intelligent and VinFast Auto
Can any of the company-specific risk be diversified away by investing in both ZEEKR Intelligent and VinFast Auto 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 ZEEKR Intelligent and VinFast Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZEEKR Intelligent Technology and VinFast Auto Ltd, you can compare the effects of market volatilities on ZEEKR Intelligent and VinFast Auto 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 ZEEKR Intelligent with a short position of VinFast Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZEEKR Intelligent and VinFast Auto.
Diversification Opportunities for ZEEKR Intelligent and VinFast Auto
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ZEEKR and VinFast is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ZEEKR Intelligent Technology and VinFast Auto Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VinFast Auto and ZEEKR Intelligent 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 ZEEKR Intelligent Technology are associated (or correlated) with VinFast Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VinFast Auto has no effect on the direction of ZEEKR Intelligent i.e., ZEEKR Intelligent and VinFast Auto go up and down completely randomly.
Pair Corralation between ZEEKR Intelligent and VinFast Auto
Allowing for the 90-day total investment horizon ZEEKR Intelligent is expected to generate 1.75 times less return on investment than VinFast Auto. But when comparing it to its historical volatility, ZEEKR Intelligent Technology is 2.61 times less risky than VinFast Auto. It trades about 0.05 of its potential returns per unit of risk. VinFast Auto Ltd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,045 in VinFast Auto Ltd on September 4, 2024 and sell it today you would lose (637.00) from holding VinFast Auto Ltd or give up 60.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 43.64% |
| Values | Daily Returns |
ZEEKR Intelligent Technology vs. VinFast Auto Ltd
Performance |
| Timeline |
| ZEEKR Intelligent |
| VinFast Auto |
ZEEKR Intelligent and VinFast Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZEEKR Intelligent and VinFast Auto
The main advantage of trading using opposite ZEEKR Intelligent and VinFast Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZEEKR Intelligent position performs unexpectedly, VinFast Auto 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 VinFast Auto will offset losses from the drop in VinFast Auto's long position.| ZEEKR Intelligent vs. Tesla Inc | ZEEKR Intelligent vs. Nio Class A | ZEEKR Intelligent vs. Xpeng Inc | ZEEKR Intelligent vs. Lucid Group |
| VinFast Auto vs. Tesla Inc | VinFast Auto vs. Nio Class A | VinFast Auto vs. Xpeng Inc | VinFast Auto vs. Lucid Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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