Correlation Between SEI Investments and Shui On
Can any of the company-specific risk be diversified away by investing in both SEI Investments and Shui On 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 Shui On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and Shui On Land, you can compare the effects of market volatilities on SEI Investments and Shui On 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 Shui On. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and Shui On.
Diversification Opportunities for SEI Investments and Shui On
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SEI and Shui is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and Shui On Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shui On Land 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 Shui On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shui On Land has no effect on the direction of SEI Investments i.e., SEI Investments and Shui On go up and down completely randomly.
Pair Corralation between SEI Investments and Shui On
If you would invest 8,157 in SEI Investments on September 26, 2024 and sell it today you would earn a total of 289.00 from holding SEI Investments or generate 3.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 4.76% |
Values | Daily Returns |
SEI Investments vs. Shui On Land
Performance |
Timeline |
SEI Investments |
Shui On Land |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SEI Investments and Shui On Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SEI Investments and Shui On
The main advantage of trading using opposite SEI Investments and Shui On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, Shui On 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 Shui On will offset losses from the drop in Shui On's long position.SEI Investments vs. Commerce Bancshares | SEI Investments vs. RLI Corp | SEI Investments vs. Westamerica Bancorporation | SEI Investments vs. Brown Brown |
Shui On vs. Fidus Investment Corp | Shui On vs. Inhibrx | Shui On vs. PennantPark Floating Rate | Shui On vs. SEI Investments |
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.
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