Correlation Between Xunlei and Intel
Can any of the company-specific risk be diversified away by investing in both Xunlei and Intel 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 Intel 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 Intel, you can compare the effects of market volatilities on Xunlei and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xunlei and Intel.
Diversification Opportunities for Xunlei and Intel
Poor diversification
The 3 months correlation between Xunlei and Intel is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Xunlei Ltd Adr and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Xunlei i.e., Xunlei and Intel go up and down completely randomly.
Pair Corralation between Xunlei and Intel
Given the investment horizon of 90 days Xunlei Ltd Adr is expected to under-perform the Intel. In addition to that, Xunlei is 1.15 times more volatile than Intel. It trades about -0.04 of its total potential returns per unit of risk. Intel is currently generating about 0.11 per unit of volatility. If you would invest 2,240 in Intel on August 23, 2024 and sell it today you would earn a total of 161.00 from holding Intel or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xunlei Ltd Adr vs. Intel
Performance |
| Timeline |
| Xunlei Ltd Adr |
| Intel |
Xunlei and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xunlei and Intel
The main advantage of trading using opposite Xunlei and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xunlei position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| Xunlei vs. Travelzoo | Xunlei vs. Emerald Expositions Events | Xunlei vs. Ziff Davis | Xunlei vs. Direct Digital Holdings |
| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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