Correlation Between NetSol Technologies and Xunlei
Can any of the company-specific risk be diversified away by investing in both NetSol Technologies 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 NetSol Technologies and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NetSol Technologies and Xunlei Ltd Adr, you can compare the effects of market volatilities on NetSol Technologies 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 NetSol Technologies with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of NetSol Technologies and Xunlei.
Diversification Opportunities for NetSol Technologies and Xunlei
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NetSol and Xunlei is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding NetSol Technologies 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 NetSol Technologies 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 NetSol Technologies 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 NetSol Technologies i.e., NetSol Technologies and Xunlei go up and down completely randomly.
Pair Corralation between NetSol Technologies and Xunlei
Given the investment horizon of 90 days NetSol Technologies is expected to generate 0.92 times more return on investment than Xunlei. However, NetSol Technologies is 1.09 times less risky than Xunlei. It trades about 0.06 of its potential returns per unit of risk. Xunlei Ltd Adr is currently generating about 0.05 per unit of risk. If you would invest 207.00 in NetSol Technologies on August 28, 2024 and sell it today you would earn a total of 60.00 from holding NetSol Technologies or generate 28.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NetSol Technologies vs. Xunlei Ltd Adr
Performance |
| Timeline |
| NetSol Technologies |
| Xunlei Ltd Adr |
NetSol Technologies and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NetSol Technologies and Xunlei
The main advantage of trading using opposite NetSol Technologies and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NetSol Technologies 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.| NetSol Technologies vs. OLB Group | NetSol Technologies vs. Friendable | NetSol Technologies vs. KwikClick |
| 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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