Correlation Between Exceed Company and VinFast Auto

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

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

Diversification Opportunities for Exceed Company and VinFast Auto

0.0

Correlation Coefficient

Exceed Company  VinFast Auto

Pay attention - limited upside

The 3 months correlation between Exceed and VinFast is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Exceed Company and VinFast Auto Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VinFast Auto and Exceed Company 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 Exceed Company 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 Exceed Company i.e., Exceed Company and VinFast Auto go up and down completely randomly.

Pair Corralation between Exceed Company and VinFast Auto

If you would invest  0.01  in Exceed Company on January 29, 2024 and sell it today you would earn a total of  0.00  from holding Exceed Company or generate 0.0% return on investment over 90 days.

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

Exceed Company  vs.  VinFast Auto Ltd

Exceed Company

Risk-Adjusted Performance

0 of 100

Very Weak

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

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 unsteady performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Exceed Company and VinFast Auto

The main advantage of trading using opposite Exceed Company and VinFast Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exceed Company 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 Exceed Company 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.