Correlation Between Xunlei and Emerald Expositions
Can any of the company-specific risk be diversified away by investing in both Xunlei and Emerald Expositions 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 Emerald Expositions 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 Emerald Expositions Events, you can compare the effects of market volatilities on Xunlei and Emerald Expositions 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 Emerald Expositions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xunlei and Emerald Expositions.
Diversification Opportunities for Xunlei and Emerald Expositions
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xunlei and Emerald is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Xunlei Ltd Adr and Emerald Expositions Events in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald Expositions 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 Emerald Expositions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Expositions has no effect on the direction of Xunlei i.e., Xunlei and Emerald Expositions go up and down completely randomly.
Pair Corralation between Xunlei and Emerald Expositions
Given the investment horizon of 90 days Xunlei Ltd Adr is expected to generate 0.87 times more return on investment than Emerald Expositions. However, Xunlei Ltd Adr is 1.16 times less risky than Emerald Expositions. It trades about 0.11 of its potential returns per unit of risk. Emerald Expositions Events is currently generating about -0.03 per unit of risk. If you would invest 148.00 in Xunlei Ltd Adr on February 28, 2024 and sell it today you would earn a total of 25.50 from holding Xunlei Ltd Adr or generate 17.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Xunlei Ltd Adr vs. Emerald Expositions Events
Performance |
Timeline |
Xunlei Ltd Adr |
Emerald Expositions |
Xunlei and Emerald Expositions Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xunlei and Emerald Expositions
The main advantage of trading using opposite Xunlei and Emerald Expositions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xunlei position performs unexpectedly, Emerald Expositions 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 Emerald Expositions will offset losses from the drop in Emerald Expositions' long position.Xunlei vs. Travelzoo | Xunlei vs. Emerald Expositions Events | Xunlei vs. Ziff Davis | Xunlei vs. Direct Digital Holdings |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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