Correlation Between Xunlei and JOHNSON
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By analyzing existing cross correlation between Xunlei Ltd Adr and JOHNSON JOHNSON 585, you can compare the effects of market volatilities on Xunlei and JOHNSON 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 JOHNSON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xunlei and JOHNSON.
Diversification Opportunities for Xunlei and JOHNSON
Significant diversification
The 3 months correlation between Xunlei and JOHNSON is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Xunlei Ltd Adr and JOHNSON JOHNSON 585 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JOHNSON JOHNSON 585 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 JOHNSON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JOHNSON JOHNSON 585 has no effect on the direction of Xunlei i.e., Xunlei and JOHNSON go up and down completely randomly.
Pair Corralation between Xunlei and JOHNSON
Given the investment horizon of 90 days Xunlei Ltd Adr is expected to generate 4.05 times more return on investment than JOHNSON. However, Xunlei is 4.05 times more volatile than JOHNSON JOHNSON 585. It trades about 0.05 of its potential returns per unit of risk. JOHNSON JOHNSON 585 is currently generating about 0.02 per unit of risk. If you would invest 181.00 in Xunlei Ltd Adr on October 10, 2024 and sell it today you would earn a total of 30.00 from holding Xunlei Ltd Adr or generate 16.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 94.4% |
Values | Daily Returns |
Xunlei Ltd Adr vs. JOHNSON JOHNSON 585
Performance |
Timeline |
Xunlei Ltd Adr |
JOHNSON JOHNSON 585 |
Xunlei and JOHNSON Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xunlei and JOHNSON
The main advantage of trading using opposite Xunlei and JOHNSON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xunlei position performs unexpectedly, JOHNSON 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 JOHNSON will offset losses from the drop in JOHNSON's long position.Xunlei vs. Travelzoo | Xunlei vs. Emerald Expositions Events | Xunlei vs. Ziff Davis | Xunlei vs. Direct Digital Holdings |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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