Correlation Between VinFast Auto and Avantor

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

Diversification Opportunities for VinFast Auto and Avantor

0.0

Correlation Coefficient

VinFast Auto  Avantor

Pay attention - limited upside

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

Pair Corralation between VinFast Auto and Avantor

Considering the 90-day investment horizon VinFast Auto Ltd is expected to under-perform the Avantor. But the stock apears to be less risky and, when comparing its historical volatility, VinFast Auto Ltd is 1.17 times less risky than Avantor. The stock trades about 0.0 of its potential returns per unit of risk. The Avantor is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,263  in Avantor on May 3, 2025 and sell it today you would earn a total of  81.00  from holding Avantor or generate 6.41% 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.  Avantor

VinFast Auto

Risk-Adjusted Performance

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 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.

Avantor

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Avantor are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Avantor may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with VinFast Auto and Avantor

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

The idea behind VinFast Auto Ltd and Avantor 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.