Correlation Between Glory Star and Xunlei
Can any of the company-specific risk be diversified away by investing in both Glory Star 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 Glory Star and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glory Star New and Xunlei Ltd Adr, you can compare the effects of market volatilities on Glory Star 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 Glory Star with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glory Star and Xunlei.
Diversification Opportunities for Glory Star and Xunlei
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Glory and Xunlei is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Glory Star New 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 Glory Star 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 Glory Star New 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 Glory Star i.e., Glory Star and Xunlei go up and down completely randomly.
Pair Corralation between Glory Star and Xunlei
If you would invest 164.00 in Xunlei Ltd Adr on August 29, 2024 and sell it today you would earn a total of 25.00 from holding Xunlei Ltd Adr or generate 15.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Glory Star New vs. Xunlei Ltd Adr
Performance |
| Timeline |
| Glory Star New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Xunlei Ltd Adr |
Glory Star and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glory Star and Xunlei
The main advantage of trading using opposite Glory Star and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glory Star 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.| Glory Star vs. Global Payout | Glory Star vs. Clubhouse Media Group | Glory Star vs. ZW Data Action | Glory Star vs. MGO Global Common |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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