Correlation Between SEI INVESTMENTS and PG +

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

By analyzing existing cross correlation between SEI INVESTMENTS and PG E P6, you can compare the effects of market volatilities on SEI INVESTMENTS and PG + 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 PG +. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI INVESTMENTS and PG +.

Diversification Opportunities for SEI INVESTMENTS and PG +

0.31

Correlation Coefficient

SEI INVESTMENTS  PG +

Weak diversification

The 3 months correlation between SEI and PCG6 is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding SEI INVESTMENTS and PG E P6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PG E P6 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 PG +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PG E P6 has no effect on the direction of SEI INVESTMENTS i.e., SEI INVESTMENTS and PG + go up and down completely randomly.

Pair Corralation between SEI INVESTMENTS and PG +

Assuming the 90 days trading horizon SEI INVESTMENTS is expected to under-perform the PG +. But the stock apears to be less risky and, when comparing its historical volatility, SEI INVESTMENTS is 1.41 times less risky than PG +. The stock trades about -0.17 of its potential returns per unit of risk. The PG E P6 is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  2,141  in PG E P6 on December 19, 2024 and sell it today you would lose (141.00) from holding PG E P6 or give up 6.59% of portfolio value over 90 days.

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

SEI INVESTMENTS  vs.  PG E P6

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 fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

PG E P6

Risk-Adjusted Performance

Very Weak

Over the last 90 days PG E P6 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with SEI INVESTMENTS and PG +

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

The idea behind SEI INVESTMENTS and PG E P6 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.