Correlation Between VinFast Auto and BiOasis Technologies

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

Diversification Opportunities for VinFast Auto and BiOasis Technologies

0.0

Correlation Coefficient

VinFast Auto  BiOasis Technologies

Pay attention - limited upside

The 3 months correlation between VinFast and BiOasis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and biOasis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on biOasis Technologies 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 BiOasis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of biOasis Technologies has no effect on the direction of VinFast Auto i.e., VinFast Auto and BiOasis Technologies go up and down completely randomly.

Pair Corralation between VinFast Auto and BiOasis Technologies

If you would invest  36.00  in VinFast Auto Ltd on October 5, 2024 and sell it today you would earn a total of  10.00  from holding VinFast Auto Ltd or generate 27.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

VinFast Auto Ltd  vs.  biOasis Technologies

VinFast Auto

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in VinFast Auto Ltd are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, VinFast Auto showed solid returns over the last few months and may actually be approaching a breakup point.

biOasis Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days biOasis Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BiOasis Technologies is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with VinFast Auto and BiOasis Technologies

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

The idea behind VinFast Auto Ltd and biOasis Technologies 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.