Correlation Between VinFast Auto and Floor Decor
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and Floor Decor 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 Floor Decor 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 Floor Decor Holdings, you can compare the effects of market volatilities on VinFast Auto and Floor Decor 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 Floor Decor. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and Floor Decor.
Diversification Opportunities for VinFast Auto and Floor Decor
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VinFast and Floor is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Floor Decor Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floor Decor Holdings 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 Floor Decor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floor Decor Holdings has no effect on the direction of VinFast Auto i.e., VinFast Auto and Floor Decor go up and down completely randomly.
Pair Corralation between VinFast Auto and Floor Decor
Considering the 90-day investment horizon VinFast Auto Ltd is expected to generate 0.85 times more return on investment than Floor Decor. However, VinFast Auto Ltd is 1.17 times less risky than Floor Decor. It trades about -0.03 of its potential returns per unit of risk. Floor Decor Holdings is currently generating about -0.12 per unit of risk. If you would invest 342.00 in VinFast Auto Ltd on August 29, 2025 and sell it today you would lose (19.00) from holding VinFast Auto Ltd or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VinFast Auto Ltd vs. Floor Decor Holdings
Performance |
| Timeline |
| VinFast Auto |
| Floor Decor Holdings |
VinFast Auto and Floor Decor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and Floor Decor
The main advantage of trading using opposite VinFast Auto and Floor Decor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, Floor Decor 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 Floor Decor will offset losses from the drop in Floor Decor's long position.| VinFast Auto vs. Space Communication | VinFast Auto vs. Canadian Utilities Limited | VinFast Auto vs. Active Health Foods | VinFast Auto vs. Ausnutria Dairy |
| Floor Decor vs. Bebida Beverage Co | Floor Decor vs. GoldQuest Mining Corp | Floor Decor vs. Jones Soda Co | Floor Decor vs. Fevertree Drinks Plc |
Check out your portfolio center.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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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