Correlation Between Mapletree Logistics and Xunlei
Can any of the company-specific risk be diversified away by investing in both Mapletree Logistics 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 Mapletree Logistics and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapletree Logistics Trust and Xunlei Ltd Adr, you can compare the effects of market volatilities on Mapletree Logistics 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 Mapletree Logistics with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapletree Logistics and Xunlei.
Diversification Opportunities for Mapletree Logistics and Xunlei
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mapletree and Xunlei is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mapletree Logistics Trust 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 Mapletree Logistics 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 Mapletree Logistics Trust 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 Mapletree Logistics i.e., Mapletree Logistics and Xunlei go up and down completely randomly.
Pair Corralation between Mapletree Logistics and Xunlei
Assuming the 90 days horizon Mapletree Logistics Trust is expected to under-perform the Xunlei. In addition to that, Mapletree Logistics is 1.23 times more volatile than Xunlei Ltd Adr. It trades about -0.01 of its total potential returns per unit of risk. Xunlei Ltd Adr is currently generating about 0.03 per unit of volatility. If you would invest 162.00 in Xunlei Ltd Adr on September 2, 2024 and sell it today you would earn a total of 36.00 from holding Xunlei Ltd Adr or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 60.48% |
| Values | Daily Returns |
Mapletree Logistics Trust vs. Xunlei Ltd Adr
Performance |
| Timeline |
| Mapletree Logistics Trust |
| Xunlei Ltd Adr |
Mapletree Logistics and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapletree Logistics and Xunlei
The main advantage of trading using opposite Mapletree Logistics and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapletree Logistics 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.| Mapletree Logistics vs. Lipocine | Mapletree Logistics vs. Valneva SE ADR | Mapletree Logistics vs. Genfit | Mapletree Logistics vs. Sellas Life Sciences |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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