Correlation Between Xunlei and Haoxi Health
Can any of the company-specific risk be diversified away by investing in both Xunlei and Haoxi Health 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 Haoxi Health 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 Haoxi Health Technology, you can compare the effects of market volatilities on Xunlei and Haoxi Health 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 Haoxi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xunlei and Haoxi Health.
Diversification Opportunities for Xunlei and Haoxi Health
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xunlei and Haoxi is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Xunlei Ltd Adr and Haoxi Health Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haoxi Health Technology 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 Haoxi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haoxi Health Technology has no effect on the direction of Xunlei i.e., Xunlei and Haoxi Health go up and down completely randomly.
Pair Corralation between Xunlei and Haoxi Health
Given the investment horizon of 90 days Xunlei Ltd Adr is expected to generate 0.54 times more return on investment than Haoxi Health. However, Xunlei Ltd Adr is 1.85 times less risky than Haoxi Health. It trades about 0.16 of its potential returns per unit of risk. Haoxi Health Technology is currently generating about -0.08 per unit of risk. If you would invest 161.00 in Xunlei Ltd Adr on March 7, 2024 and sell it today you would earn a total of 17.00 from holding Xunlei Ltd Adr or generate 10.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xunlei Ltd Adr vs. Haoxi Health Technology
Performance |
Timeline |
Xunlei Ltd Adr |
Haoxi Health Technology |
Xunlei and Haoxi Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xunlei and Haoxi Health
The main advantage of trading using opposite Xunlei and Haoxi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xunlei position performs unexpectedly, Haoxi Health 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 Haoxi Health will offset losses from the drop in Haoxi Health's long position.Xunlei vs. MGO Global Common | Xunlei vs. Baosheng Media Group | Xunlei vs. National CineMedia | Xunlei vs. ZW Data Action |
Haoxi Health vs. Ziff Davis | Haoxi Health vs. Interpublic Group of | Haoxi Health vs. iClick Interactive Asia | Haoxi Health vs. Lendway |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |