Correlation Between ZW Data and Xunlei
Can any of the company-specific risk be diversified away by investing in both ZW Data 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 ZW Data and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZW Data Action and Xunlei Ltd Adr, you can compare the effects of market volatilities on ZW Data 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 ZW Data with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZW Data and Xunlei.
Diversification Opportunities for ZW Data and Xunlei
Pay attention - limited upside
The 3 months correlation between CNET and Xunlei is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding ZW Data Action 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 ZW Data 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 ZW Data Action 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 ZW Data i.e., ZW Data and Xunlei go up and down completely randomly.
Pair Corralation between ZW Data and Xunlei
Given the investment horizon of 90 days ZW Data Action is expected to under-perform the Xunlei. In addition to that, ZW Data is 1.54 times more volatile than Xunlei Ltd Adr. It trades about -0.02 of its total potential returns per unit of risk. Xunlei Ltd Adr is currently generating about 0.06 per unit of volatility. If you would invest 155.00 in Xunlei Ltd Adr on January 15, 2025 and sell it today you would earn a total of 179.00 from holding Xunlei Ltd Adr or generate 115.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZW Data Action vs. Xunlei Ltd Adr
Performance |
| Timeline |
| ZW Data Action |
| Xunlei Ltd Adr |
ZW Data and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZW Data and Xunlei
The main advantage of trading using opposite ZW Data and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZW Data 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.| ZW Data vs. Fluent Inc | ||
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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