Correlation Between YSX Tech and SEI Investments

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

By analyzing existing cross correlation between YSX Tech Co, and SEI Investments, you can compare the effects of market volatilities on YSX Tech and SEI Investments 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 YSX Tech with a short position of SEI Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of YSX Tech and SEI Investments.

Diversification Opportunities for YSX Tech and SEI Investments

0.13

Correlation Coefficient

YSX Tech  SEI Investments

Average diversification

The 3 months correlation between YSX and SEI is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding YSX Tech Co, and SEI Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Investments and YSX Tech 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 YSX Tech Co, are associated (or correlated) with SEI Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEI Investments has no effect on the direction of YSX Tech i.e., YSX Tech and SEI Investments go up and down completely randomly.

Pair Corralation between YSX Tech and SEI Investments

Given the investment horizon of 90 days YSX Tech Co, is expected to generate 8.83 times more return on investment than SEI Investments. However, YSX Tech is 8.83 times more volatile than SEI Investments. It trades about 0.0 of its potential returns per unit of risk. SEI Investments is currently generating about -0.15 per unit of risk. If you would invest  431.00  in YSX Tech Co, on December 17, 2024 and sell it today you would lose (151.00) from holding YSX Tech Co, or give up 35.03% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

YSX Tech Co,  vs.  SEI Investments

YSX Tech Co,

Risk-Adjusted Performance

Very Weak

Over the last 90 days YSX Tech Co, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, YSX Tech is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

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 inconsistent performance in the last few months, the Stock's forward indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with YSX Tech and SEI Investments

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

The idea behind YSX Tech Co, and SEI Investments 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.