Correlation Between SOUTHERN and Xunlei
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By analyzing existing cross correlation between SOUTHERN CALIF EDISON and Xunlei Ltd Adr, you can compare the effects of market volatilities on SOUTHERN 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 SOUTHERN with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Xunlei.
Diversification Opportunities for SOUTHERN and Xunlei
Very good diversification
The 3 months correlation between SOUTHERN and Xunlei is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN CALIF EDISON 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 SOUTHERN 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 SOUTHERN CALIF EDISON 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 SOUTHERN i.e., SOUTHERN and Xunlei go up and down completely randomly.
Pair Corralation between SOUTHERN and Xunlei
Assuming the 90 days trading horizon SOUTHERN is expected to generate 4.24 times less return on investment than Xunlei. But when comparing it to its historical volatility, SOUTHERN CALIF EDISON is 5.39 times less risky than Xunlei. It trades about 0.08 of its potential returns per unit of risk. Xunlei Ltd Adr is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 191.00 in Xunlei Ltd Adr on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Xunlei Ltd Adr or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
SOUTHERN CALIF EDISON vs. Xunlei Ltd Adr
Performance |
| Timeline |
| SOUTHERN CALIF EDISON |
| Xunlei Ltd Adr |
SOUTHERN and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Xunlei
The main advantage of trading using opposite SOUTHERN and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN 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.| SOUTHERN vs. Xunlei Ltd Adr | SOUTHERN vs. 51Talk Online Education | SOUTHERN vs. Eastman Chemical | SOUTHERN vs. CarsalesCom Ltd ADR |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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