Correlation Between VinFast Auto and Morgan Stanley

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

Diversification Opportunities for VinFast Auto and Morgan Stanley

-0.69

Correlation Coefficient

VinFast Auto  Morgan Stanley

Excellent diversification

The 3 months correlation between VinFast and Morgan is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding VinFast Auto Ltd and Morgan Stanley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley 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 Morgan Stanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morgan Stanley has no effect on the direction of VinFast Auto i.e., VinFast Auto and Morgan Stanley go up and down completely randomly.

Pair Corralation between VinFast Auto and Morgan Stanley

Assuming the 90 days horizon VinFast Auto Ltd is expected to generate 25.91 times more return on investment than Morgan Stanley. However, VinFast Auto is 25.91 times more volatile than Morgan Stanley. It trades about 0.04 of its potential returns per unit of risk. Morgan Stanley is currently generating about 0.2 per unit of risk. If you would invest  17.00  in VinFast Auto Ltd on September 8, 2025 and sell it today you would earn a total of  0.00  from holding VinFast Auto Ltd or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	66.67%
Values	Daily Returns

VinFast Auto Ltd  vs.  Morgan Stanley

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 fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2026. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Morgan Stanley

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Morgan Stanley are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Morgan Stanley is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with VinFast Auto and Morgan Stanley

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

The idea behind VinFast Auto Ltd and Morgan Stanley 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.