Correlation Between VinFast Auto and AYRO

Can any of the company-specific risk be diversified away by investing in both VinFast Auto and AYRO 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 AYRO 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 AYRO Inc, you can compare the effects of market volatilities on VinFast Auto and AYRO 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 AYRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and AYRO.

Diversification Opportunities for VinFast Auto and AYRO

-0.5

Correlation Coefficient

VinFast Auto  AYRO

Very good diversification

The 3 months correlation between VinFast and AYRO is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and AYRO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AYRO Inc 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 AYRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AYRO Inc has no effect on the direction of VinFast Auto i.e., VinFast Auto and AYRO go up and down completely randomly.

Pair Corralation between VinFast Auto and AYRO

Considering the 90-day investment horizon VinFast Auto Ltd is expected to generate 3.14 times more return on investment than AYRO. However, VinFast Auto is 3.14 times more volatile than AYRO Inc. It trades about 0.09 of its potential returns per unit of risk. AYRO Inc is currently generating about -0.02 per unit of risk. If you would invest  398.00  in VinFast Auto Ltd on September 13, 2024 and sell it today you would earn a total of  38.00  from holding VinFast Auto Ltd or generate 9.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

VinFast Auto Ltd  vs.  AYRO Inc

VinFast Auto

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in VinFast Auto Ltd are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, VinFast Auto unveiled solid returns over the last few months and may actually be approaching a breakup point.

AYRO Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AYRO Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with VinFast Auto and AYRO

The main advantage of trading using opposite VinFast Auto and AYRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, AYRO 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 AYRO will offset losses from the drop in AYRO's long position.

The idea behind VinFast Auto Ltd and AYRO Inc 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.