Correlation Between SEI INVESTMENTS and Sydbank A/S

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

By analyzing existing cross correlation between SEI INVESTMENTS and Sydbank AS, you can compare the effects of market volatilities on SEI INVESTMENTS and Sydbank A/S 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 Sydbank A/S. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI INVESTMENTS and Sydbank A/S.

Diversification Opportunities for SEI INVESTMENTS and Sydbank A/S

-0.79

Correlation Coefficient

SEI INVESTMENTS  Sydbank A/S

Pay attention - limited upside

The 3 months correlation between SEI and Sydbank is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding SEI INVESTMENTS and Sydbank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank A/S 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 Sydbank A/S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank A/S has no effect on the direction of SEI INVESTMENTS i.e., SEI INVESTMENTS and Sydbank A/S go up and down completely randomly.

Pair Corralation between SEI INVESTMENTS and Sydbank A/S

Assuming the 90 days trading horizon SEI INVESTMENTS is expected to under-perform the Sydbank A/S. But the stock apears to be less risky and, when comparing its historical volatility, SEI INVESTMENTS is 1.29 times less risky than Sydbank A/S. The stock trades about -0.17 of its potential returns per unit of risk. The Sydbank AS is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  4,672  in Sydbank AS on December 20, 2024 and sell it today you would earn a total of  1,303  from holding Sydbank AS or generate 27.89% return on investment over 90 days.

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

SEI INVESTMENTS  vs.  Sydbank AS

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.

Sydbank A/S

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sydbank AS are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Sydbank A/S reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SEI INVESTMENTS and Sydbank A/S

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

The idea behind SEI INVESTMENTS and Sydbank AS 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.