Correlation Between Xunlei and Workday
Can any of the company-specific risk be diversified away by investing in both Xunlei and Workday 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 Workday 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 Workday, you can compare the effects of market volatilities on Xunlei and Workday 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 Workday. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xunlei and Workday.
Diversification Opportunities for Xunlei and Workday
Very good diversification
The 3 months correlation between Xunlei and Workday is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Xunlei Ltd Adr and Workday in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workday 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 Workday. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workday has no effect on the direction of Xunlei i.e., Xunlei and Workday go up and down completely randomly.
Pair Corralation between Xunlei and Workday
Given the investment horizon of 90 days Xunlei Ltd Adr is expected to generate 1.09 times more return on investment than Workday. However, Xunlei is 1.09 times more volatile than Workday. It trades about 0.0 of its potential returns per unit of risk. Workday is currently generating about -0.08 per unit of risk. If you would invest 150.00 in Xunlei Ltd Adr on January 17, 2024 and sell it today you would lose (1.00) from holding Xunlei Ltd Adr or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xunlei Ltd Adr vs. Workday
Performance |
| Timeline |
| Xunlei Ltd Adr |
| Workday |
Xunlei and Workday Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xunlei and Workday
The main advantage of trading using opposite Xunlei and Workday positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xunlei position performs unexpectedly, Workday 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 Workday will offset losses from the drop in Workday's long position.| Xunlei vs. Travelzoo | Xunlei vs. Emerald Expositions Events | Xunlei vs. Direct Digital Holdings | Xunlei vs. Glory Star New |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |