Correlation Between VinFast Auto and Blackbird Plc

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

Diversification Opportunities for VinFast Auto and Blackbird Plc

-0.44

Correlation Coefficient

VinFast Auto  Blackbird Plc

Very good diversification

The 3 months correlation between VinFast and Blackbird is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Blackbird plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackbird plc 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 Blackbird Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackbird plc has no effect on the direction of VinFast Auto i.e., VinFast Auto and Blackbird Plc go up and down completely randomly.

Pair Corralation between VinFast Auto and Blackbird Plc

Assuming the 90 days horizon VinFast Auto Ltd is expected to under-perform the Blackbird Plc. But the stock apears to be less risky and, when comparing its historical volatility, VinFast Auto Ltd is 1.44 times less risky than Blackbird Plc. The stock trades about -0.01 of its potential returns per unit of risk. The Blackbird plc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  6.25  in Blackbird plc on September 3, 2024 and sell it today you would earn a total of  0.50  from holding Blackbird plc or generate 8.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

VinFast Auto Ltd  vs.  Blackbird plc

VinFast Auto

Risk-Adjusted Performance

0 of 100

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.

Blackbird plc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Blackbird plc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Blackbird Plc reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VinFast Auto and Blackbird Plc

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

The idea behind VinFast Auto Ltd and Blackbird plc 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.