Correlation Between Minor International and Xunlei
Can any of the company-specific risk be diversified away by investing in both Minor International 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 Minor International and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minor International PCL and Xunlei Ltd Adr, you can compare the effects of market volatilities on Minor International 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 Minor International with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minor International and Xunlei.
Diversification Opportunities for Minor International and Xunlei
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Minor and Xunlei is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Minor International PCL 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 Minor International 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 Minor International PCL 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 Minor International i.e., Minor International and Xunlei go up and down completely randomly.
Pair Corralation between Minor International and Xunlei
Assuming the 90 days horizon Minor International PCL is expected to under-perform the Xunlei. But the pink sheet apears to be less risky and, when comparing its historical volatility, Minor International PCL is 1.96 times less risky than Xunlei. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Xunlei Ltd Adr is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 149.00 in Xunlei Ltd Adr on September 14, 2024 and sell it today you would earn a total of 61.00 from holding Xunlei Ltd Adr or generate 40.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 58.36% |
| Values | Daily Returns |
Minor International PCL vs. Xunlei Ltd Adr
Performance |
| Timeline |
| Minor International PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Xunlei Ltd Adr |
Minor International and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minor International and Xunlei
The main advantage of trading using opposite Minor International and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minor International 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.| Minor International vs. Alaska Air Group | Minor International vs. American Airlines Group | Minor International vs. Southwest Airlines | Minor International vs. Delta Air Lines |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |