Correlation Between Unisys and Xunlei
Can any of the company-specific risk be diversified away by investing in both Unisys 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 Unisys and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unisys and Xunlei Ltd Adr, you can compare the effects of market volatilities on Unisys 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 Unisys with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unisys and Xunlei.
Diversification Opportunities for Unisys and Xunlei
Good diversification
The 3 months correlation between Unisys and Xunlei is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Unisys 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 Unisys 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 Unisys 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 Unisys i.e., Unisys and Xunlei go up and down completely randomly.
Pair Corralation between Unisys and Xunlei
Considering the 90-day investment horizon Unisys is expected to generate 1.79 times more return on investment than Xunlei. However, Unisys is 1.79 times more volatile than Xunlei Ltd Adr. It trades about 0.2 of its potential returns per unit of risk. Xunlei Ltd Adr is currently generating about 0.17 per unit of risk. If you would invest 498.00 in Unisys on January 26, 2024 and sell it today you would earn a total of 56.00 from holding Unisys or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unisys vs. Xunlei Ltd Adr
Performance |
| Timeline |
| Unisys |
| Xunlei Ltd Adr |
Unisys and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unisys and Xunlei
The main advantage of trading using opposite Unisys and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unisys 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.| Unisys vs. Infosys Ltd ADR | Unisys vs. Cognizant Technology Solutions | Unisys vs. Fidelity National Information | Unisys vs. Jack Henry Associates |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |