Correlation Between SEI Investments and U Haul

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

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

Diversification Opportunities for SEI Investments and U Haul

-0.4

Correlation Coefficient

SEI Investments  U Haul

Very good diversification

The 3 months correlation between SEI and UHAL is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and U Haul Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Haul Holding 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 U Haul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Haul Holding has no effect on the direction of SEI Investments i.e., SEI Investments and U Haul go up and down completely randomly.

Pair Corralation between SEI Investments and U Haul

Given the investment horizon of 90 days SEI Investments is expected to generate 0.74 times more return on investment than U Haul. However, SEI Investments is 1.34 times less risky than U Haul. It trades about -0.29 of its potential returns per unit of risk. U Haul Holding is currently generating about -0.25 per unit of risk. If you would invest  8,608  in SEI Investments on October 13, 2024 and sell it today you would lose (708.00) from holding SEI Investments or give up 8.22% of portfolio value over 90 days.

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

SEI Investments  vs.  U Haul Holding

SEI Investments

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SEI Investments are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent forward indicators, SEI Investments may actually be approaching a critical reversion point that can send shares even higher in February 2025.

U Haul Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days U Haul Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with SEI Investments and U Haul

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

The idea behind SEI Investments and U Haul Holding 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.