Correlation Between Astrana Health and Xunlei
Can any of the company-specific risk be diversified away by investing in both Astrana Health and Xunlei 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 Astrana Health and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astrana Health and Xunlei Ltd Adr, you can compare the effects of market volatilities on Astrana Health and Xunlei 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 Astrana Health with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astrana Health and Xunlei.
Diversification Opportunities for Astrana Health and Xunlei
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Astrana and Xunlei is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Astrana Health and Xunlei Ltd Adr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xunlei Ltd Adr and Astrana Health 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 Astrana Health are associated (or correlated) with Xunlei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xunlei Ltd Adr has no effect on the direction of Astrana Health i.e., Astrana Health and Xunlei go up and down completely randomly.
Pair Corralation between Astrana Health and Xunlei
Given the investment horizon of 90 days Astrana Health is expected to generate 0.94 times more return on investment than Xunlei. However, Astrana Health is 1.07 times less risky than Xunlei. It trades about 0.06 of its potential returns per unit of risk. Xunlei Ltd Adr is currently generating about 0.05 per unit of risk. If you would invest 3,045 in Astrana Health on September 4, 2024 and sell it today you would earn a total of 1,436 from holding Astrana Health or generate 47.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astrana Health vs. Xunlei Ltd Adr
Performance |
| Timeline |
| Astrana Health |
| Xunlei Ltd Adr |
Astrana Health and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astrana Health and Xunlei
The main advantage of trading using opposite Astrana Health and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astrana Health position performs unexpectedly, Xunlei 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 Xunlei will offset losses from the drop in Xunlei's long position.| Astrana Health vs. Turning Point Brands | Astrana Health vs. Altria Group | Astrana Health vs. Willamette Valley Vineyards | Astrana Health vs. Accel Entertainment |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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