Correlation Between Xtrackers California and Xunlei
Can any of the company-specific risk be diversified away by investing in both Xtrackers California 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 Xtrackers California and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers California Municipal and Xunlei Ltd Adr, you can compare the effects of market volatilities on Xtrackers California 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 Xtrackers California with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers California and Xunlei.
Diversification Opportunities for Xtrackers California and Xunlei
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xtrackers and Xunlei is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers California Municipal 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 Xtrackers California 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 Xtrackers California Municipal 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 Xtrackers California i.e., Xtrackers California and Xunlei go up and down completely randomly.
Pair Corralation between Xtrackers California and Xunlei
Allowing for the 90-day total investment horizon Xtrackers California Municipal is expected to under-perform the Xunlei. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers California Municipal is 5.1 times less risky than Xunlei. The etf trades about -0.24 of its potential returns per unit of risk. The Xunlei Ltd Adr is currently generating about -0.02 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers California Municipal vs. Xunlei Ltd Adr
Performance |
| Timeline |
| Xtrackers California |
| Xunlei Ltd Adr |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xtrackers California and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers California and Xunlei
The main advantage of trading using opposite Xtrackers California and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers California 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.| Xtrackers California vs. Vanguard Total Stock | Xtrackers California vs. SPDR SP 500 | Xtrackers California vs. iShares Core SP | Xtrackers California vs. Vanguard Total Bond |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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