Correlation Between Xunlei and New Oriental
Can any of the company-specific risk be diversified away by investing in both Xunlei and New Oriental 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 New Oriental 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 New Oriental Energy, you can compare the effects of market volatilities on Xunlei and New Oriental 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 New Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xunlei and New Oriental.
Diversification Opportunities for Xunlei and New Oriental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xunlei and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xunlei Ltd Adr and New Oriental Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Oriental Energy 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 New Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Oriental Energy has no effect on the direction of Xunlei i.e., Xunlei and New Oriental go up and down completely randomly.
Pair Corralation between Xunlei and New Oriental
If you would invest 181.00 in Xunlei Ltd Adr on August 30, 2024 and sell it today you would earn a total of 14.00 from holding Xunlei Ltd Adr or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Xunlei Ltd Adr vs. New Oriental Energy
Performance |
| Timeline |
| Xunlei Ltd Adr |
| New Oriental Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xunlei and New Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xunlei and New Oriental
The main advantage of trading using opposite Xunlei and New Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xunlei position performs unexpectedly, New Oriental 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 New Oriental will offset losses from the drop in New Oriental's long position.| Xunlei vs. Alarum Technologies | Xunlei vs. Nutanix | Xunlei vs. Palo Alto Networks | Xunlei vs. GigaCloud Technology Class |
| New Oriental vs. Xunlei Ltd Adr | New Oriental vs. Harmony Gold Mining | New Oriental vs. Software Acquisition Group | New Oriental vs. NH Foods Ltd |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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