Correlation Between Critical Metals and Xunlei
Can any of the company-specific risk be diversified away by investing in both Critical Metals 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 Critical Metals and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Critical Metals Corp and Xunlei Ltd Adr, you can compare the effects of market volatilities on Critical Metals 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 Critical Metals with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Critical Metals and Xunlei.
Diversification Opportunities for Critical Metals and Xunlei
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Critical and Xunlei is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Critical Metals Corp 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 Critical Metals 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 Critical Metals Corp 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 Critical Metals i.e., Critical Metals and Xunlei go up and down completely randomly.
Pair Corralation between Critical Metals and Xunlei
Given the investment horizon of 90 days Critical Metals Corp is expected to generate 0.97 times more return on investment than Xunlei. However, Critical Metals Corp is 1.03 times less risky than Xunlei. It trades about 0.13 of its potential returns per unit of risk. Xunlei Ltd Adr is currently generating about 0.06 per unit of risk. If you would invest 625.00 in Critical Metals Corp on September 3, 2024 and sell it today you would earn a total of 56.00 from holding Critical Metals Corp or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Critical Metals Corp vs. Xunlei Ltd Adr
Performance |
| Timeline |
| Critical Metals Corp |
| Xunlei Ltd Adr |
Critical Metals and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Critical Metals and Xunlei
The main advantage of trading using opposite Critical Metals and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Critical Metals 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.| Critical Metals vs. Xunlei Ltd Adr | Critical Metals vs. Integral Ad Science | Critical Metals vs. Asure Software | Critical Metals vs. SmartStop Self Storage |
| Xunlei vs. Travelzoo | Xunlei vs. Emerald Expositions Events | Xunlei vs. Ziff Davis | Xunlei vs. Direct Digital 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.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |