Correlation Between WiMi Hologram and Xunlei
Can any of the company-specific risk be diversified away by investing in both WiMi Hologram 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 WiMi Hologram and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WiMi Hologram Cloud and Xunlei Ltd Adr, you can compare the effects of market volatilities on WiMi Hologram 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 WiMi Hologram with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiMi Hologram and Xunlei.
Diversification Opportunities for WiMi Hologram and Xunlei
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WiMi and Xunlei is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud 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 WiMi Hologram 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 WiMi Hologram Cloud 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 WiMi Hologram i.e., WiMi Hologram and Xunlei go up and down completely randomly.
Pair Corralation between WiMi Hologram and Xunlei
Given the investment horizon of 90 days WiMi Hologram Cloud is expected to under-perform the Xunlei. But the stock apears to be less risky and, when comparing its historical volatility, WiMi Hologram Cloud is 1.18 times less risky than Xunlei. The stock trades about -0.06 of its potential returns per unit of risk. The Xunlei Ltd Adr is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 208.00 in Xunlei Ltd Adr on August 31, 2024 and sell it today you would lose (10.00) from holding Xunlei Ltd Adr or give up 4.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WiMi Hologram Cloud vs. Xunlei Ltd Adr
Performance |
| Timeline |
| WiMi Hologram Cloud |
| Xunlei Ltd Adr |
WiMi Hologram and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WiMi Hologram and Xunlei
The main advantage of trading using opposite WiMi Hologram and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiMi Hologram 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.| WiMi Hologram vs. National CineMedia | WiMi Hologram vs. Baosheng Media Group | WiMi Hologram vs. Townsquare Media | WiMi Hologram vs. Dolphin Entertainment |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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