Correlation Between VinFast Auto and Nio
Can any of the company-specific risk be diversified away by investing in both VinFast Auto and Nio 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 Nio 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 Nio Class A, you can compare the effects of market volatilities on VinFast Auto and Nio 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 Nio. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinFast Auto and Nio.
Diversification Opportunities for VinFast Auto and Nio
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VinFast and Nio is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Nio Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nio Class A 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 Nio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nio Class A has no effect on the direction of VinFast Auto i.e., VinFast Auto and Nio go up and down completely randomly.
Pair Corralation between VinFast Auto and Nio
Considering the 90-day investment horizon VinFast Auto Ltd is expected to under-perform the Nio. But the stock apears to be less risky and, when comparing its historical volatility, VinFast Auto Ltd is 3.02 times less risky than Nio. The stock trades about -0.1 of its potential returns per unit of risk. The Nio Class A is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 439.00 in Nio Class A on July 18, 2025 and sell it today you would earn a total of 243.00 from holding Nio Class A or generate 55.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VinFast Auto Ltd vs. Nio Class A
Performance |
| Timeline |
| VinFast Auto |
| Nio Class A |
VinFast Auto and Nio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinFast Auto and Nio
The main advantage of trading using opposite VinFast Auto and Nio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinFast Auto position performs unexpectedly, Nio 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 Nio will offset losses from the drop in Nio's long position.| VinFast Auto vs. BlackRock Investment Quality | VinFast Auto vs. Delaware Investments Florida | VinFast Auto vs. NexPoint Diversified Real | VinFast Auto vs. Shenzhen Investment Holdings |
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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