Correlation Between ZenaTech and Xunlei
Can any of the company-specific risk be diversified away by investing in both ZenaTech and Xunlei 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 ZenaTech and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZenaTech and Xunlei Ltd Adr, you can compare the effects of market volatilities on ZenaTech and Xunlei 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 ZenaTech with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZenaTech and Xunlei.
Diversification Opportunities for ZenaTech and Xunlei
Very good diversification
The 3 months correlation between ZenaTech and Xunlei is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ZenaTech and Xunlei Ltd Adr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xunlei Ltd Adr and ZenaTech 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 ZenaTech are associated (or correlated) with Xunlei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xunlei Ltd Adr has no effect on the direction of ZenaTech i.e., ZenaTech and Xunlei go up and down completely randomly.
Pair Corralation between ZenaTech and Xunlei
Given the investment horizon of 90 days ZenaTech is expected to generate 11.87 times more return on investment than Xunlei. However, ZenaTech is 11.87 times more volatile than Xunlei Ltd Adr. It trades about 0.08 of its potential returns per unit of risk. Xunlei Ltd Adr is currently generating about 0.02 per unit of risk. If you would invest 880.00 in ZenaTech on September 12, 2024 and sell it today you would lose (213.00) from holding ZenaTech or give up 24.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 10.3% |
| Values | Daily Returns |
ZenaTech vs. Xunlei Ltd Adr
Performance |
| Timeline |
| ZenaTech |
| Xunlei Ltd Adr |
ZenaTech and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZenaTech and Xunlei
The main advantage of trading using opposite ZenaTech and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZenaTech position performs unexpectedly, Xunlei 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 Xunlei will offset losses from the drop in Xunlei's long position.| ZenaTech vs. BOS Better Online | ZenaTech vs. National CineMedia | ZenaTech vs. Entravision Communications | ZenaTech vs. Xunlei Ltd Adr |
| Xunlei vs. Travelzoo | Xunlei vs. Emerald Expositions Events | Xunlei vs. Ziff Davis | Xunlei vs. Direct Digital Holdings |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |