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

0.29

Correlation Coefficient

ZEEKR Intelligent  VinFast Auto

Modest diversification

The 3 months correlation between ZEEKR and VinFast is 0.29. 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 Technology is expected to generate 1.53 times more return on investment than VinFast Auto. However, ZEEKR Intelligent is 1.53 times more volatile than VinFast Auto Ltd. It trades about 0.16 of its potential returns per unit of risk. VinFast Auto Ltd is currently generating about 0.07 per unit of risk. If you would invest  1,635  in ZEEKR Intelligent Technology on September 12, 2024 and sell it today you would earn a total of  1,186  from holding ZEEKR Intelligent Technology or generate 72.54% return on investment over 90 days.

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

ZEEKR Intelligent Technology  vs.  VinFast Auto Ltd

ZEEKR Intelligent

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ZEEKR Intelligent Technology are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating forward-looking signals, ZEEKR Intelligent disclosed solid returns over the last few months and may actually be approaching a breakup point.

VinFast Auto

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in VinFast Auto Ltd are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, VinFast Auto unveiled solid returns over the last few months and may actually be approaching a breakup point.

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.

The idea behind ZEEKR Intelligent Technology 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.