Correlation Between VinFast Auto and Polaris International

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

Diversification Opportunities for VinFast Auto and Polaris International

-0.54

Correlation Coefficient

VinFast Auto  Polaris International

Excellent diversification

The 3 months correlation between VinFast and Polaris is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Polaris International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polaris International 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 Polaris International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polaris International has no effect on the direction of VinFast Auto i.e., VinFast Auto and Polaris International go up and down completely randomly.

Pair Corralation between VinFast Auto and Polaris International

Considering the 90-day investment horizon VinFast Auto Ltd is expected to under-perform the Polaris International. But the stock apears to be less risky and, when comparing its historical volatility, VinFast Auto Ltd is 66.63 times less risky than Polaris International. The stock trades about -0.06 of its potential returns per unit of risk. The Polaris International Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Polaris International Holdings on August 2, 2025 and sell it today you would earn a total of  0.02  from holding Polaris International Holdings or generate 9.223372036854776E16% return on investment over 90 days.

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

VinFast Auto Ltd  vs.  Polaris International Holdings

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 latest unsteady performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Polaris International

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Polaris International Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical indicators, Polaris International displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VinFast Auto and Polaris International

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

The idea behind VinFast Auto Ltd and Polaris International Holdings 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.