Correlation Between VinFast Auto and CarMax
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and CarMax 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 CarMax 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 CarMax Inc, you can compare the effects of market volatilities on VinFast Auto and CarMax 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 CarMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and CarMax.
Diversification Opportunities for VinFast Auto and CarMax
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VinFast and CarMax is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and CarMax Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CarMax Inc 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 CarMax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CarMax Inc has no effect on the direction of VinFast Auto i.e., VinFast Auto and CarMax go up and down completely randomly.
Pair Corralation between VinFast Auto and CarMax
Considering the 90-day investment horizon VinFast Auto Ltd is expected to generate 0.52 times more return on investment than CarMax. However, VinFast Auto Ltd is 1.92 times less risky than CarMax. It trades about -0.04 of its potential returns per unit of risk. CarMax Inc is currently generating about -0.16 per unit of risk. If you would invest 350.00 in VinFast Auto Ltd on August 25, 2025 and sell it today you would lose (27.00) from holding VinFast Auto Ltd or give up 7.71% 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. CarMax Inc
Performance |
| Timeline |
| VinFast Auto |
| CarMax Inc |
VinFast Auto and CarMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and CarMax
The main advantage of trading using opposite VinFast Auto and CarMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, CarMax 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 CarMax will offset losses from the drop in CarMax's long position.| VinFast Auto vs. Lucid Group | VinFast Auto vs. ZEEKR Intelligent Technology | VinFast Auto vs. LKQ Corporation | VinFast Auto vs. Lithia Motors |
| CarMax vs. AutoNation | CarMax vs. Group 1 Automotive | CarMax vs. Allison Transmission Holdings | CarMax vs. Lear Corporation |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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