Correlation Between Bitcoin and Sei Institutional

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

By analyzing existing cross correlation between Bitcoin and Sei Institutional Managed, you can compare the effects of market volatilities on Bitcoin and Sei Institutional 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 Bitcoin with a short position of Sei Institutional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Sei Institutional.

Diversification Opportunities for Bitcoin and Sei Institutional

0.25

Correlation Coefficient

Bitcoin  Sei Institutional

Modest diversification

The 3 months correlation between Bitcoin and Sei is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Sei Institutional Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sei Institutional Managed and Bitcoin 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 Bitcoin are associated (or correlated) with Sei Institutional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sei Institutional Managed has no effect on the direction of Bitcoin i.e., Bitcoin and Sei Institutional go up and down completely randomly.

Pair Corralation between Bitcoin and Sei Institutional

Assuming the 90 days trading horizon Bitcoin is expected to generate 12.92 times more return on investment than Sei Institutional. However, Bitcoin is 12.92 times more volatile than Sei Institutional Managed. It trades about 0.09 of its potential returns per unit of risk. Sei Institutional Managed is currently generating about 0.0 per unit of risk. If you would invest  2,343,721  in Bitcoin on October 24, 2024 and sell it today you would earn a total of  8,249,079  from holding Bitcoin or generate 351.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	62.39%
Values	Daily Returns

Bitcoin  vs.  Sei Institutional Managed

Bitcoin

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Bitcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Sei Institutional Managed

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sei Institutional Managed are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Sei Institutional is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bitcoin and Sei Institutional

The main advantage of trading using opposite Bitcoin and Sei Institutional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Sei Institutional 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 Sei Institutional will offset losses from the drop in Sei Institutional's long position.

The idea behind Bitcoin and Sei Institutional Managed 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 CEOs Directory module to screen CEOs from public companies around the world.