Correlation Between Xtant Medical and Xunlei

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

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

Diversification Opportunities for Xtant Medical and Xunlei

0.09

Correlation Coefficient

Xtant Medical  Xunlei

Significant diversification

The 3 months correlation between Xtant and Xunlei is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings 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 Xtant Medical 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 Xtant Medical Holdings 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 Xtant Medical i.e., Xtant Medical and Xunlei go up and down completely randomly.

Pair Corralation between Xtant Medical and Xunlei

Given the investment horizon of 90 days Xtant Medical Holdings is expected to under-perform the Xunlei. In addition to that, Xtant Medical is 1.11 times more volatile than Xunlei Ltd Adr. It trades about -0.05 of its total potential returns per unit of risk. Xunlei Ltd Adr is currently generating about 0.04 per unit of volatility. If you would invest  187.00  in Xunlei Ltd Adr on October 15, 2024 and sell it today you would earn a total of  11.00  from holding Xunlei Ltd Adr or generate 5.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Xtant Medical Holdings  vs.  Xunlei Ltd Adr

Xtant Medical Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xtant Medical Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Xunlei Ltd Adr

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Xunlei Ltd Adr are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical and fundamental indicators, Xunlei may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Xtant Medical and Xunlei

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

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.