Correlation Between Xunlei and Verint Systems
Can any of the company-specific risk be diversified away by investing in both Xunlei and Verint Systems 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 Verint Systems 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 Verint Systems, you can compare the effects of market volatilities on Xunlei and Verint Systems 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 Verint Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xunlei and Verint Systems.
Diversification Opportunities for Xunlei and Verint Systems
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xunlei and Verint is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Xunlei Ltd Adr and Verint Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verint Systems 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 Verint Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verint Systems has no effect on the direction of Xunlei i.e., Xunlei and Verint Systems go up and down completely randomly.
Pair Corralation between Xunlei and Verint Systems
Given the investment horizon of 90 days Xunlei Ltd Adr is expected to generate 1.01 times more return on investment than Verint Systems. However, Xunlei is 1.01 times more volatile than Verint Systems. It trades about 0.01 of its potential returns per unit of risk. Verint Systems is currently generating about -0.03 per unit of risk. If you would invest 197.00 in Xunlei Ltd Adr on August 26, 2024 and sell it today you would lose (11.00) from holding Xunlei Ltd Adr or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xunlei Ltd Adr vs. Verint Systems
Performance |
| Timeline |
| Xunlei Ltd Adr |
| Verint Systems |
Xunlei and Verint Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xunlei and Verint Systems
The main advantage of trading using opposite Xunlei and Verint Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xunlei position performs unexpectedly, Verint Systems 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 Verint Systems will offset losses from the drop in Verint Systems' long position.| Xunlei vs. Travelzoo | Xunlei vs. Emerald Expositions Events | Xunlei vs. Ziff Davis | Xunlei vs. Direct Digital Holdings |
| Verint Systems vs. GigaCloud Technology Class | Verint Systems vs. Arqit Quantum | Verint Systems vs. Telos Corp | Verint Systems vs. Cemtrex |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |