Correlation Between SEI Investments and Reitar Logtech

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

By analyzing existing cross correlation between SEI Investments and Reitar Logtech Holdings, you can compare the effects of market volatilities on SEI Investments and Reitar Logtech 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 Reitar Logtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and Reitar Logtech.

Diversification Opportunities for SEI Investments and Reitar Logtech

-0.72

Correlation Coefficient

SEI Investments  Reitar Logtech

Pay attention - limited upside

The 3 months correlation between SEI and Reitar is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and Reitar Logtech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitar Logtech Holdings 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 Reitar Logtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitar Logtech Holdings has no effect on the direction of SEI Investments i.e., SEI Investments and Reitar Logtech go up and down completely randomly.

Pair Corralation between SEI Investments and Reitar Logtech

Given the investment horizon of 90 days SEI Investments is expected to generate 4.91 times less return on investment than Reitar Logtech. But when comparing it to its historical volatility, SEI Investments is 4.94 times less risky than Reitar Logtech. It trades about 0.02 of its potential returns per unit of risk. Reitar Logtech Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  391.00  in Reitar Logtech Holdings on October 25, 2024 and sell it today you would lose (2.00) from holding Reitar Logtech Holdings or give up 0.51% of portfolio value over 90 days.

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

SEI Investments  vs.  Reitar Logtech Holdings

SEI Investments

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SEI Investments are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent forward indicators, SEI Investments exhibited solid returns over the last few months and may actually be approaching a breakup point.

Reitar Logtech Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Reitar Logtech Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with SEI Investments and Reitar Logtech

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

The idea behind SEI Investments and Reitar Logtech Holdings 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.