Correlation Between Expeditors International and SEI Investments
Can any of the company-specific risk be diversified away by investing in both Expeditors International 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 Expeditors International and SEI Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expeditors International of and SEI Investments, you can compare the effects of market volatilities on Expeditors International 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 Expeditors International with a short position of SEI Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expeditors International and SEI Investments.
Diversification Opportunities for Expeditors International and SEI Investments
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Expeditors and SEI is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Expeditors International of and SEI Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Investments and Expeditors International 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 Expeditors International of 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 Expeditors International i.e., Expeditors International and SEI Investments go up and down completely randomly.
Pair Corralation between Expeditors International and SEI Investments
Given the investment horizon of 90 days Expeditors International is expected to generate 9.24 times less return on investment than SEI Investments. In addition to that, Expeditors International is 1.11 times more volatile than SEI Investments. It trades about 0.01 of its total potential returns per unit of risk. SEI Investments is currently generating about 0.12 per unit of volatility. If you would invest 5,903 in SEI Investments on August 27, 2024 and sell it today you would earn a total of 2,179 from holding SEI Investments or generate 36.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expeditors International of vs. SEI Investments
Performance |
| Timeline |
| Expeditors International |
| SEI Investments |
Expeditors International and SEI Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expeditors International and SEI Investments
The main advantage of trading using opposite Expeditors International and SEI Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expeditors International 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.| Expeditors International vs. Landstar System | Expeditors International vs. JB Hunt Transport | Expeditors International vs. Hub Group | Expeditors International vs. Forward Air |
| SEI Investments vs. PowerUp Acquisition Corp | SEI Investments vs. Aurora Innovation | SEI Investments vs. HUMANA INC | SEI Investments vs. Aquagold International |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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