Correlation Between FEMALE HEALTH and SEI INVESTMENTS

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Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH and SEI INVESTMENTS 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 FEMALE HEALTH and SEI INVESTMENTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and SEI INVESTMENTS, you can compare the effects of market volatilities on FEMALE HEALTH and SEI INVESTMENTS 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 FEMALE HEALTH with a short position of SEI INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and SEI INVESTMENTS.

Diversification Opportunities for FEMALE HEALTH and SEI INVESTMENTS

FEMALESEIDiversified AwayFEMALESEIDiversified Away100%
-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between FEMALE and SEI is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH and SEI INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI INVESTMENTS and FEMALE HEALTH 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 FEMALE HEALTH are associated (or correlated) with SEI INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEI INVESTMENTS has no effect on the direction of FEMALE HEALTH i.e., FEMALE HEALTH and SEI INVESTMENTS go up and down completely randomly.

Pair Corralation between FEMALE HEALTH and SEI INVESTMENTS

Assuming the 90 days trading horizon FEMALE HEALTH is expected to generate 4.15 times more return on investment than SEI INVESTMENTS. However, FEMALE HEALTH is 4.15 times more volatile than SEI INVESTMENTS. It trades about 0.11 of its potential returns per unit of risk. SEI INVESTMENTS is currently generating about 0.22 per unit of risk. If you would invest  76.00  in FEMALE HEALTH on October 26, 2024 and sell it today you would earn a total of  25.00  from holding FEMALE HEALTH or generate 32.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

FEMALE HEALTH  vs.  SEI INVESTMENTS

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -30-20-1001020
JavaScript chart by amCharts 3.21.15FMW SI3
       Timeline  
FEMALE HEALTH 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in FEMALE HEALTH are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, FEMALE HEALTH exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.60.70.80.91
SEI INVESTMENTS 

Risk-Adjusted Performance

17 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in SEI INVESTMENTS are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SEI INVESTMENTS unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan707580

FEMALE HEALTH and SEI INVESTMENTS Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-16.95-12.7-8.44-4.190.04.368.7913.2217.66 0.050.100.15
JavaScript chart by amCharts 3.21.15FMW SI3
       Returns  

Pair Trading with FEMALE HEALTH and SEI INVESTMENTS

The main advantage of trading using opposite FEMALE HEALTH and SEI INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH position performs unexpectedly, SEI INVESTMENTS 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 INVESTMENTS will offset losses from the drop in SEI INVESTMENTS's long position.
The idea behind FEMALE HEALTH and SEI INVESTMENTS 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.
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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