Correlation Between Xunlei and Vestis
Can any of the company-specific risk be diversified away by investing in both Xunlei and Vestis 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 Vestis 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 Vestis, you can compare the effects of market volatilities on Xunlei and Vestis 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 Vestis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xunlei and Vestis.
Diversification Opportunities for Xunlei and Vestis
Modest diversification
The 3 months correlation between Xunlei and Vestis is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Xunlei Ltd Adr and Vestis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestis 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 Vestis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestis has no effect on the direction of Xunlei i.e., Xunlei and Vestis go up and down completely randomly.
Pair Corralation between Xunlei and Vestis
Given the investment horizon of 90 days Xunlei Ltd Adr is expected to generate 1.53 times more return on investment than Vestis. However, Xunlei is 1.53 times more volatile than Vestis. It trades about 0.11 of its potential returns per unit of risk. Vestis is currently generating about 0.1 per unit of risk. If you would invest 199.00 in Xunlei Ltd Adr on October 20, 2024 and sell it today you would earn a total of 13.00 from holding Xunlei Ltd Adr or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xunlei Ltd Adr vs. Vestis
Performance |
| Timeline |
| Xunlei Ltd Adr |
| Vestis |
Xunlei and Vestis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xunlei and Vestis
The main advantage of trading using opposite Xunlei and Vestis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xunlei position performs unexpectedly, Vestis 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 Vestis will offset losses from the drop in Vestis' long position.| Xunlei vs. Travelzoo | Xunlei vs. Emerald Expositions Events | Xunlei vs. Ziff Davis | Xunlei vs. Direct Digital Holdings |
| Vestis vs. Noble plc | Vestis vs. Vantage Drilling International | Vestis vs. AKITA Drilling | Vestis vs. BRC Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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