Correlation Between MGO Global and Xunlei
Can any of the company-specific risk be diversified away by investing in both MGO Global 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 MGO Global and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGO Global Common and Xunlei Ltd Adr, you can compare the effects of market volatilities on MGO Global 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 MGO Global with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGO Global and Xunlei.
Diversification Opportunities for MGO Global and Xunlei
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MGO and Xunlei is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding MGO Global Common 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 MGO Global 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 MGO Global Common 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 MGO Global i.e., MGO Global and Xunlei go up and down completely randomly.
Pair Corralation between MGO Global and Xunlei
Given the investment horizon of 90 days MGO Global Common is expected to generate 9.97 times more return on investment than Xunlei. However, MGO Global is 9.97 times more volatile than Xunlei Ltd Adr. It trades about 0.05 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 440.00 in MGO Global Common on August 29, 2024 and sell it today you would lose (208.00) from holding MGO Global Common or give up 47.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.52% |
| Values | Daily Returns |
MGO Global Common vs. Xunlei Ltd Adr
Performance |
| Timeline |
| MGO Global Common |
| Xunlei Ltd Adr |
MGO Global and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGO Global and Xunlei
The main advantage of trading using opposite MGO Global and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGO Global 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.| MGO Global vs. Baosheng Media Group | MGO Global vs. National CineMedia | MGO Global vs. Impact Fusion International | MGO Global vs. ZW Data Action |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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