Correlation Between Sabre Corpo and Xunlei
Can any of the company-specific risk be diversified away by investing in both Sabre Corpo 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 Sabre Corpo and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre Corpo and Xunlei Ltd Adr, you can compare the effects of market volatilities on Sabre Corpo 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 Sabre Corpo with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Corpo and Xunlei.
Diversification Opportunities for Sabre Corpo and Xunlei
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sabre and Xunlei is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corpo 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 Sabre Corpo 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 Sabre Corpo 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 Sabre Corpo i.e., Sabre Corpo and Xunlei go up and down completely randomly.
Pair Corralation between Sabre Corpo and Xunlei
Given the investment horizon of 90 days Sabre Corpo is expected to under-perform the Xunlei. In addition to that, Sabre Corpo is 1.28 times more volatile than Xunlei Ltd Adr. It trades about -0.02 of its total potential returns per unit of risk. Xunlei Ltd Adr is currently generating about 0.03 per unit of volatility. If you would invest 126.00 in Xunlei Ltd Adr on January 20, 2024 and sell it today you would earn a total of 21.00 from holding Xunlei Ltd Adr or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Corpo vs. Xunlei Ltd Adr
Performance |
| Timeline |
| Sabre Corpo |
| Xunlei Ltd Adr |
Sabre Corpo and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Corpo and Xunlei
The main advantage of trading using opposite Sabre Corpo and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Corpo 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.| Sabre Corpo vs. Expedia Group | Sabre Corpo vs. Trip Group Ltd | Sabre Corpo vs. Booking Holdings | Sabre Corpo vs. Despegar Corp |
| Xunlei vs. Interpublic Group of | Xunlei vs. Criteo Sa | Xunlei vs. WPP PLC ADR | Xunlei vs. Integral Ad Science |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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