Correlation Between VinFast Auto and UGI

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

Diversification Opportunities for VinFast Auto and UGI

0.76

Correlation Coefficient

VinFast Auto  UGI

Poor diversification

The 3 months correlation between VinFast and UGI is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and UGI Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UGI Corporation 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 UGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UGI Corporation has no effect on the direction of VinFast Auto i.e., VinFast Auto and UGI go up and down completely randomly.

Pair Corralation between VinFast Auto and UGI

Assuming the 90 days horizon VinFast Auto Ltd is expected to under-perform the UGI. In addition to that, VinFast Auto is 6.46 times more volatile than UGI Corporation. It trades about -0.03 of its total potential returns per unit of risk. UGI Corporation is currently generating about -0.17 per unit of volatility. If you would invest  3,591  in UGI Corporation on July 13, 2025 and sell it today you would lose (413.00) from holding UGI Corporation or give up 11.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	84.62%
Values	Daily Returns

VinFast Auto Ltd  vs.  UGI Corp.

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 uncertain performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in November 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

UGI Corporation

Risk-Adjusted Performance

Weakest

Over the last 90 days UGI Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's technical and fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with VinFast Auto and UGI

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

The idea behind VinFast Auto Ltd and UGI Corporation 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.