Correlation Between SEI INVESTMENTS and Postal Savings
Can any of the company-specific risk be diversified away by investing in both SEI INVESTMENTS and Postal Savings 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 Postal Savings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI INVESTMENTS and Postal Savings Bank, you can compare the effects of market volatilities on SEI INVESTMENTS and Postal Savings 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 Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI INVESTMENTS and Postal Savings.
Diversification Opportunities for SEI INVESTMENTS and Postal Savings
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SEI and Postal is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding SEI INVESTMENTS and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank 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 Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of SEI INVESTMENTS i.e., SEI INVESTMENTS and Postal Savings go up and down completely randomly.
Pair Corralation between SEI INVESTMENTS and Postal Savings
Assuming the 90 days trading horizon SEI INVESTMENTS is expected to under-perform the Postal Savings. But the stock apears to be less risky and, when comparing its historical volatility, SEI INVESTMENTS is 4.41 times less risky than Postal Savings. The stock trades about -0.01 of its potential returns per unit of risk. The Postal Savings Bank is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Postal Savings Bank on December 2, 2024 and sell it today you would earn a total of 22.00 from holding Postal Savings Bank or generate 57.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SEI INVESTMENTS vs. Postal Savings Bank
Performance |
Timeline |
SEI INVESTMENTS |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Postal Savings Bank |
SEI INVESTMENTS and Postal Savings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SEI INVESTMENTS and Postal Savings
The main advantage of trading using opposite SEI INVESTMENTS and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI INVESTMENTS position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.SEI INVESTMENTS vs. CLOVER HEALTH INV | SEI INVESTMENTS vs. Virtu Financial | SEI INVESTMENTS vs. BANK OCHINA H | SEI INVESTMENTS vs. REVO INSURANCE SPA |
Postal Savings vs. Chesapeake Utilities | Postal Savings vs. UNITED UTILITIES GP | Postal Savings vs. Japan Asia Investment | Postal Savings vs. Yunnan Water 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.
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