Correlation Between Xunlei and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Xunlei and Harmony Gold 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 Harmony Gold 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 Harmony Gold Mining, you can compare the effects of market volatilities on Xunlei and Harmony Gold 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 Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xunlei and Harmony Gold.
Diversification Opportunities for Xunlei and Harmony Gold
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xunlei and Harmony is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xunlei Ltd Adr and Harmony Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harmony Gold Mining 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 Harmony Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harmony Gold Mining has no effect on the direction of Xunlei i.e., Xunlei and Harmony Gold go up and down completely randomly.
Pair Corralation between Xunlei and Harmony Gold
Given the investment horizon of 90 days Xunlei Ltd Adr is expected to generate 0.83 times more return on investment than Harmony Gold. However, Xunlei Ltd Adr is 1.2 times less risky than Harmony Gold. It trades about 0.06 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.22 per unit of risk. If you would invest 191.00 in Xunlei Ltd Adr on September 2, 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xunlei Ltd Adr vs. Harmony Gold Mining
Performance |
| Timeline |
| Xunlei Ltd Adr |
| Harmony Gold Mining |
Xunlei and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xunlei and Harmony Gold
The main advantage of trading using opposite Xunlei and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xunlei position performs unexpectedly, Harmony Gold 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 Harmony Gold will offset losses from the drop in Harmony Gold's long position.| Xunlei vs. Travelzoo | Xunlei vs. Emerald Expositions Events | Xunlei vs. Ziff Davis | Xunlei vs. Direct Digital Holdings |
| Harmony Gold vs. Aurion Resources | Harmony Gold vs. Rio2 Limited | Harmony Gold vs. Palamina Corp | Harmony Gold vs. BTU Metals Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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