Correlation Between Zane Interactive and Xunlei
Can any of the company-specific risk be diversified away by investing in both Zane Interactive 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 Zane Interactive and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zane Interactive Publishing and Xunlei Ltd Adr, you can compare the effects of market volatilities on Zane Interactive 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 Zane Interactive with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zane Interactive and Xunlei.
Diversification Opportunities for Zane Interactive and Xunlei
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zane and Xunlei is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zane Interactive Publishing 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 Zane Interactive 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 Zane Interactive Publishing 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 Zane Interactive i.e., Zane Interactive and Xunlei go up and down completely randomly.
Pair Corralation between Zane Interactive and Xunlei
If you would invest 191.00 in Xunlei Ltd Adr on September 3, 2024 and sell it today you would earn a total of 23.00 from holding Xunlei Ltd Adr or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Zane Interactive Publishing vs. Xunlei Ltd Adr
Performance |
| Timeline |
| Zane Interactive Pub |
| Xunlei Ltd Adr |
Zane Interactive and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zane Interactive and Xunlei
The main advantage of trading using opposite Zane Interactive and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zane Interactive 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.| Zane Interactive vs. Keurig Dr Pepper | Zane Interactive vs. Diageo PLC ADR | Zane Interactive vs. Willamette Valley Vineyards | Zane Interactive vs. Xponential Fitness |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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