Correlation Between Dennys Corp and Xunlei
Can any of the company-specific risk be diversified away by investing in both Dennys Corp 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 Dennys Corp and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dennys Corp and Xunlei Ltd Adr, you can compare the effects of market volatilities on Dennys Corp 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 Dennys Corp with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dennys Corp and Xunlei.
Diversification Opportunities for Dennys Corp and Xunlei
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dennys and Xunlei is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dennys 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 Dennys Corp 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 Dennys 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 Dennys Corp i.e., Dennys Corp and Xunlei go up and down completely randomly.
Pair Corralation between Dennys Corp and Xunlei
Given the investment horizon of 90 days Dennys Corp is expected to under-perform the Xunlei. But the stock apears to be less risky and, when comparing its historical volatility, Dennys Corp is 1.3 times less risky than Xunlei. The stock trades about -0.02 of its potential returns per unit of risk. The Xunlei Ltd Adr is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 204.00 in Xunlei Ltd Adr on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Xunlei Ltd Adr or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dennys Corp vs. Xunlei Ltd Adr
Performance |
| Timeline |
| Dennys Corp |
| Xunlei Ltd Adr |
Dennys Corp and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dennys Corp and Xunlei
The main advantage of trading using opposite Dennys Corp and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dennys Corp 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.| Dennys Corp vs. Brinker International | Dennys Corp vs. Bloomin Brands | Dennys Corp vs. Jack In The | Dennys Corp vs. BJs Restaurants |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |