Correlation Between ENTERPRISE and Xunlei
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By analyzing existing cross correlation between ENTERPRISE PRODUCTS OPERATING and Xunlei Ltd Adr, you can compare the effects of market volatilities on ENTERPRISE 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 ENTERPRISE with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENTERPRISE and Xunlei.
Diversification Opportunities for ENTERPRISE and Xunlei
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ENTERPRISE and Xunlei is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ENTERPRISE PRODUCTS OPERATING 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 ENTERPRISE 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 ENTERPRISE PRODUCTS OPERATING 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 ENTERPRISE i.e., ENTERPRISE and Xunlei go up and down completely randomly.
Pair Corralation between ENTERPRISE and Xunlei
Assuming the 90 days trading horizon ENTERPRISE PRODUCTS OPERATING is expected to under-perform the Xunlei. But the bond apears to be less risky and, when comparing its historical volatility, ENTERPRISE PRODUCTS OPERATING is 5.16 times less risky than Xunlei. The bond trades about -0.03 of its potential returns per unit of risk. The Xunlei Ltd Adr is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 160.00 in Xunlei Ltd Adr on November 3, 2024 and sell it today you would earn a total of 88.00 from holding Xunlei Ltd Adr or generate 55.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
ENTERPRISE PRODUCTS OPERATING vs. Xunlei Ltd Adr
Performance |
| Timeline |
| ENTERPRISE PRODUCTS |
| Xunlei Ltd Adr |
ENTERPRISE and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENTERPRISE and Xunlei
The main advantage of trading using opposite ENTERPRISE and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENTERPRISE 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.| ENTERPRISE vs. Asure Software | ENTERPRISE vs. Cementos Pacasmayo SAA | ENTERPRISE vs. Hurco Companies | ENTERPRISE vs. Simpson Manufacturing |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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