Correlation Between Conifer Holdings, and VinFast Auto

Can any of the company-specific risk be diversified away by investing in both Conifer Holdings, 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 Conifer Holdings, and VinFast Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Conifer Holdings, 975 and VinFast Auto Ltd, you can compare the effects of market volatilities on Conifer Holdings, 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 Conifer Holdings, with a short position of VinFast Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conifer Holdings, and VinFast Auto.

Diversification Opportunities for Conifer Holdings, and VinFast Auto

-0.32

Correlation Coefficient

Conifer Holdings,  VinFast Auto

Very good diversification

The 3 months correlation between Conifer and VinFast is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Conifer Holdings, 975 and VinFast Auto Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VinFast Auto and Conifer Holdings, 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 Conifer Holdings, 975 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 Conifer Holdings, i.e., Conifer Holdings, and VinFast Auto go up and down completely randomly.

Pair Corralation between Conifer Holdings, and VinFast Auto

Assuming the 90 days horizon Conifer Holdings, 975 is expected to generate 0.21 times more return on investment than VinFast Auto. However, Conifer Holdings, 975 is 4.66 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 0.0 per unit of risk. If you would invest  2,095  in Conifer Holdings, 975 on December 21, 2024 and sell it today you would earn a total of  105.00  from holding Conifer Holdings, 975 or generate 5.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	78.33%
Values	Daily Returns

Conifer Holdings, 975  vs.  VinFast Auto Ltd

Conifer Holdings, 975

Risk-Adjusted Performance

Insignificant

Over the last 90 days Conifer Holdings, 975 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly uncertain basic indicators, Conifer Holdings, may actually be approaching a critical reversion point that can send shares even higher in April 2025.

VinFast Auto

Risk-Adjusted Performance

Very Weak

Over the last 90 days VinFast Auto Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, VinFast Auto is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Conifer Holdings, and VinFast Auto

The main advantage of trading using opposite Conifer Holdings, and VinFast Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conifer Holdings, 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.

The idea behind Conifer Holdings, 975 and VinFast Auto Ltd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.