Correlation Between Turquoise Hill and Xunlei
Can any of the company-specific risk be diversified away by investing in both Turquoise Hill 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 Turquoise Hill and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turquoise Hill Resources and Xunlei Ltd Adr, you can compare the effects of market volatilities on Turquoise Hill 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 Turquoise Hill with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turquoise Hill and Xunlei.
Diversification Opportunities for Turquoise Hill and Xunlei
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Turquoise and Xunlei is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Turquoise Hill Resources 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 Turquoise Hill 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 Turquoise Hill Resources 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 Turquoise Hill i.e., Turquoise Hill and Xunlei go up and down completely randomly.
Pair Corralation between Turquoise Hill and Xunlei
If you would invest 213.00 in Xunlei Ltd Adr on December 29, 2024 and sell it today you would earn a total of 249.00 from holding Xunlei Ltd Adr or generate 116.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Turquoise Hill Resources vs. Xunlei Ltd Adr
Performance |
Timeline |
Turquoise Hill Resources |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Xunlei Ltd Adr |
Turquoise Hill and Xunlei Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Turquoise Hill and Xunlei
The main advantage of trading using opposite Turquoise Hill and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turquoise Hill 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.Turquoise Hill vs. Space Communication | Turquoise Hill vs. Cardinal Health | Turquoise Hill vs. Arhaus Inc | Turquoise Hill vs. Pinterest |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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