Correlation Between Carsales and Xunlei
Can any of the company-specific risk be diversified away by investing in both Carsales 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 Carsales and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CarsalesCom Ltd ADR and Xunlei Ltd Adr, you can compare the effects of market volatilities on Carsales 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 Carsales with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carsales and Xunlei.
Diversification Opportunities for Carsales and Xunlei
Very good diversification
The 3 months correlation between Carsales and Xunlei is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding CarsalesCom Ltd ADR 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 Carsales 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 CarsalesCom Ltd ADR 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 Carsales i.e., Carsales and Xunlei go up and down completely randomly.
Pair Corralation between Carsales and Xunlei
If you would invest 210.00 in Xunlei Ltd Adr on November 3, 2024 and sell it today you would earn a total of 50.00 from holding Xunlei Ltd Adr or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
CarsalesCom Ltd ADR vs. Xunlei Ltd Adr
Performance |
| Timeline |
| CarsalesCom ADR |
| Xunlei Ltd Adr |
Carsales and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carsales and Xunlei
The main advantage of trading using opposite Carsales and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carsales 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.| Carsales vs. Quizam Media | Carsales vs. DGTL Holdings | Carsales vs. Tinybeans Group Limited | Carsales vs. Sabio Holdings |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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