Correlation Between Computer Sciences and Xunlei
Can any of the company-specific risk be diversified away by investing in both Computer Sciences 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 Computer Sciences and Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer Sciences Corp and Xunlei Ltd Adr, you can compare the effects of market volatilities on Computer Sciences 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 Computer Sciences with a short position of Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Sciences and Xunlei.
Diversification Opportunities for Computer Sciences and Xunlei
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Computer and Xunlei is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Computer Sciences Corp 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 Computer Sciences 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 Computer Sciences Corp 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 Computer Sciences i.e., Computer Sciences and Xunlei go up and down completely randomly.
Pair Corralation between Computer Sciences and Xunlei
If you would invest 129.00 in Xunlei Ltd Adr on January 26, 2024 and sell it today you would earn a total of 27.00 from holding Xunlei Ltd Adr or generate 20.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Computer Sciences Corp vs. Xunlei Ltd Adr
Performance |
Timeline |
Computer Sciences Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xunlei Ltd Adr |
Computer Sciences and Xunlei Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Computer Sciences and Xunlei
The main advantage of trading using opposite Computer Sciences and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Sciences 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.Computer Sciences vs. CDW Corp | Computer Sciences vs. Analog Devices | Computer Sciences vs. Cadence Design Systems | Computer Sciences vs. Intchains Group Limited |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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