Correlation Between CVR Energy and VinFast Auto

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

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

Diversification Opportunities for CVR Energy and VinFast Auto

-0.61

Correlation Coefficient

CVR Energy  VinFast Auto

Excellent diversification

The 3 months correlation between CVR and VinFast is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and VinFast Auto Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VinFast Auto and CVR Energy 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 CVR Energy 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 CVR Energy i.e., CVR Energy and VinFast Auto go up and down completely randomly.

Pair Corralation between CVR Energy and VinFast Auto

Considering the 90-day investment horizon CVR Energy is expected to generate 1.45 times more return on investment than VinFast Auto. However, CVR Energy is 1.45 times more volatile than VinFast Auto Ltd. It trades about 0.17 of its potential returns per unit of risk. VinFast Auto Ltd is currently generating about -0.03 per unit of risk. If you would invest  2,706  in CVR Energy on August 15, 2025 and sell it today you would earn a total of  962.00  from holding CVR Energy or generate 35.55% return on investment over 90 days.

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

CVR Energy  vs.  VinFast Auto Ltd

CVR Energy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CVR Energy are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, CVR Energy demonstrated solid returns over the last few months and may actually be approaching a breakup point.

VinFast Auto

Risk-Adjusted Performance

Weakest

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 comparatively stable technical and fundamental indicators, VinFast Auto is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with CVR Energy and VinFast Auto

The main advantage of trading using opposite CVR Energy and VinFast Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy 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 CVR Energy 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.