Correlation Between Xunlei and QuinStreet
Can any of the company-specific risk be diversified away by investing in both Xunlei and QuinStreet 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 QuinStreet 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 QuinStreet, you can compare the effects of market volatilities on Xunlei and QuinStreet 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 QuinStreet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xunlei and QuinStreet.
Diversification Opportunities for Xunlei and QuinStreet
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xunlei and QuinStreet is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xunlei Ltd Adr and QuinStreet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuinStreet 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 QuinStreet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuinStreet has no effect on the direction of Xunlei i.e., Xunlei and QuinStreet go up and down completely randomly.
Pair Corralation between Xunlei and QuinStreet
Given the investment horizon of 90 days Xunlei is expected to generate 1.01 times less return on investment than QuinStreet. In addition to that, Xunlei is 1.06 times more volatile than QuinStreet. It trades about 0.04 of its total potential returns per unit of risk. QuinStreet is currently generating about 0.04 per unit of volatility. If you would invest 1,682 in QuinStreet on November 2, 2024 and sell it today you would earn a total of 746.50 from holding QuinStreet or generate 44.38% 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. QuinStreet
Performance |
| Timeline |
| Xunlei Ltd Adr |
| QuinStreet |
Xunlei and QuinStreet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xunlei and QuinStreet
The main advantage of trading using opposite Xunlei and QuinStreet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xunlei position performs unexpectedly, QuinStreet 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 QuinStreet will offset losses from the drop in QuinStreet's long position.| Xunlei vs. Travelzoo | Xunlei vs. Emerald Expositions Events | Xunlei vs. Ziff Davis | Xunlei vs. Direct Digital Holdings |
| QuinStreet vs. TechTarget, Common Stock | QuinStreet vs. Tactile Systems Technology | QuinStreet vs. NMI Holdings | QuinStreet vs. Phibro Animal Health |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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