Correlation Between SHF Holdings and Xunlei
Can any of the company-specific risk be diversified away by investing in both SHF Holdings 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 SHF Holdings and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHF Holdings and Xunlei Ltd Adr, you can compare the effects of market volatilities on SHF Holdings 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 SHF Holdings with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHF Holdings and Xunlei.
Diversification Opportunities for SHF Holdings and Xunlei
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between SHF and Xunlei is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding SHF Holdings 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 SHF Holdings 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 SHF Holdings 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 SHF Holdings i.e., SHF Holdings and Xunlei go up and down completely randomly.
Pair Corralation between SHF Holdings and Xunlei
Assuming the 90 days horizon SHF Holdings is expected to under-perform the Xunlei. In addition to that, SHF Holdings is 2.49 times more volatile than Xunlei Ltd Adr. It trades about -0.23 of its total potential returns per unit of risk. Xunlei Ltd Adr is currently generating about 0.21 per unit of volatility. If you would invest 252.00 in Xunlei Ltd Adr on November 27, 2024 and sell it today you would earn a total of 52.00 from holding Xunlei Ltd Adr or generate 20.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 55.0% |
| Values | Daily Returns |
SHF Holdings vs. Xunlei Ltd Adr
Performance |
| Timeline |
| SHF Holdings |
| Xunlei Ltd Adr |
SHF Holdings and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHF Holdings and Xunlei
The main advantage of trading using opposite SHF Holdings and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHF Holdings 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.| SHF Holdings vs. National Vision Holdings | SHF Holdings vs. Alvotech | SHF Holdings vs. Western Digital | SHF Holdings vs. Analog Devices |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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