Correlation Between Mobiquity Technologies and Xunlei

Can any of the company-specific risk be diversified away by investing in both Mobiquity Technologies 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 Mobiquity Technologies and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mobiquity Technologies and Xunlei Ltd Adr, you can compare the effects of market volatilities on Mobiquity Technologies 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 Mobiquity Technologies with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobiquity Technologies and Xunlei.

Diversification Opportunities for Mobiquity Technologies and Xunlei

-0.73

Correlation Coefficient

Mobiquity Technologies  Xunlei

Pay attention - limited upside

The 3 months correlation between Mobiquity and Xunlei is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Mobiquity Technologies 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 Mobiquity Technologies 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 Mobiquity Technologies 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 Mobiquity Technologies i.e., Mobiquity Technologies and Xunlei go up and down completely randomly.

Pair Corralation between Mobiquity Technologies and Xunlei

Given the investment horizon of 90 days Mobiquity Technologies is expected to under-perform the Xunlei. In addition to that, Mobiquity Technologies is 3.21 times more volatile than Xunlei Ltd Adr. It trades about -0.1 of its total potential returns per unit of risk. Xunlei Ltd Adr is currently generating about 0.01 per unit of volatility. If you would invest  201.00  in Xunlei Ltd Adr on March 9, 2024 and sell it today you would lose (9.00) from holding Xunlei Ltd Adr or give up 4.48% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	60.32%
Values	Daily Returns

Mobiquity Technologies  vs.  Xunlei Ltd Adr

Mobiquity Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mobiquity Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, Mobiquity Technologies is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Xunlei Ltd Adr

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Xunlei Ltd Adr are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical and fundamental indicators, Xunlei unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mobiquity Technologies and Xunlei

The main advantage of trading using opposite Mobiquity Technologies and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobiquity Technologies 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.

The idea behind Mobiquity Technologies and Xunlei Ltd Adr pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.