Correlation Between SEI Investments and Orosur Mining

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

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

Diversification Opportunities for SEI Investments and Orosur Mining

-0.38

Correlation Coefficient

SEI Investments  Orosur Mining

Very good diversification

The 3 months correlation between SEI and Orosur is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and Orosur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orosur Mining and SEI Investments 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 SEI Investments are associated (or correlated) with Orosur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orosur Mining has no effect on the direction of SEI Investments i.e., SEI Investments and Orosur Mining go up and down completely randomly.

Pair Corralation between SEI Investments and Orosur Mining

Given the investment horizon of 90 days SEI Investments is expected to under-perform the Orosur Mining. But the stock apears to be less risky and, when comparing its historical volatility, SEI Investments is 9.06 times less risky than Orosur Mining. The stock trades about -0.09 of its potential returns per unit of risk. The Orosur Mining is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Orosur Mining on December 19, 2024 and sell it today you would earn a total of  3.00  from holding Orosur Mining or generate 27.27% return on investment over 90 days.

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

SEI Investments  vs.  Orosur Mining

SEI Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days SEI Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Orosur Mining

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Orosur Mining are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Orosur Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SEI Investments and Orosur Mining

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

The idea behind SEI Investments and Orosur Mining 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.