Correlation Between Xunlei and Entegris
Can any of the company-specific risk be diversified away by investing in both Xunlei and Entegris 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 Xunlei and Entegris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xunlei Ltd Adr and Entegris, you can compare the effects of market volatilities on Xunlei and Entegris 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 Xunlei with a short position of Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xunlei and Entegris.
Diversification Opportunities for Xunlei and Entegris
Good diversification
The 3 months correlation between Xunlei and Entegris is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Xunlei Ltd Adr and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris and Xunlei 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 Xunlei Ltd Adr are associated (or correlated) with Entegris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entegris has no effect on the direction of Xunlei i.e., Xunlei and Entegris go up and down completely randomly.
Pair Corralation between Xunlei and Entegris
Given the investment horizon of 90 days Xunlei Ltd Adr is expected to generate 1.44 times more return on investment than Entegris. However, Xunlei is 1.44 times more volatile than Entegris. It trades about 0.07 of its potential returns per unit of risk. Entegris is currently generating about 0.02 per unit of risk. If you would invest 189.00 in Xunlei Ltd Adr on December 12, 2024 and sell it today you would earn a total of 303.00 from holding Xunlei Ltd Adr or generate 160.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xunlei Ltd Adr vs. Entegris
Performance |
| Timeline |
| Xunlei Ltd Adr |
| Entegris |
Xunlei and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xunlei and Entegris
The main advantage of trading using opposite Xunlei and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xunlei position performs unexpectedly, Entegris 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 Entegris will offset losses from the drop in Entegris' long position.| Xunlei vs. Travelzoo | ||
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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