Correlation Between American Video and VinFast Auto

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

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

Diversification Opportunities for American Video and VinFast Auto

0.0

Correlation Coefficient

American Video  VinFast Auto

Pay attention - limited upside

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

Pair Corralation between American Video and VinFast Auto

If you would invest  42.00  in VinFast Auto Ltd on March 2, 2024 and sell it today you would earn a total of  18.00  from holding VinFast Auto Ltd or generate 42.86% return on investment over 90 days.

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

American Video Teleconferencin  vs.  VinFast Auto Ltd

American Video Telec

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days American Video Teleconferencing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, American Video is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

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 latest conflicting performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with American Video and VinFast Auto

The main advantage of trading using opposite American Video and VinFast Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Video 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 American Video Teleconferencing 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.