Correlation Between Federated Investors and SEI Investments
Can any of the company-specific risk be diversified away by investing in both Federated Investors 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 Federated Investors and SEI Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Investors B and SEI Investments, you can compare the effects of market volatilities on Federated Investors 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 Federated Investors with a short position of SEI Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Investors and SEI Investments.
Diversification Opportunities for Federated Investors and SEI Investments
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and SEI is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Federated Investors B and SEI Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Investments and Federated Investors 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 Federated Investors B 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 Federated Investors i.e., Federated Investors and SEI Investments go up and down completely randomly.
Pair Corralation between Federated Investors and SEI Investments
Considering the 90-day investment horizon Federated Investors is expected to generate 1.32 times less return on investment than SEI Investments. In addition to that, Federated Investors is 1.23 times more volatile than SEI Investments. It trades about 0.04 of its total potential returns per unit of risk. SEI Investments is currently generating about 0.06 per unit of volatility. If you would invest 6,005 in SEI Investments on August 24, 2024 and sell it today you would earn a total of 2,077 from holding SEI Investments or generate 34.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Investors B vs. SEI Investments
Performance |
| Timeline |
| Federated Investors |
| SEI Investments |
Federated Investors and SEI Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Investors and SEI Investments
The main advantage of trading using opposite Federated Investors and SEI Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Investors 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.| Federated Investors vs. Federated Premier Municipal | Federated Investors vs. Blackrock Muniyield | Federated Investors vs. Diamond Hill Investment | Federated Investors vs. NXG NextGen Infrastructure |
| SEI Investments vs. Commerce Bancshares | SEI Investments vs. RLI Corp | SEI Investments vs. Westamerica Bancorporation | SEI Investments vs. Brown Brown |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |