Correlation Between DAX Index and SEI INVESTMENTS
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By analyzing existing cross correlation between DAX Index and SEI INVESTMENTS, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of SEI INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SEI INVESTMENTS.
Diversification Opportunities for DAX Index and SEI INVESTMENTS
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and SEI is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SEI INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI INVESTMENTS and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and SEI INVESTMENTS go up and down completely randomly.
Pair Corralation between DAX Index and SEI INVESTMENTS
Assuming the 90 days trading horizon DAX Index is expected to generate 1.9 times less return on investment than SEI INVESTMENTS. But when comparing it to its historical volatility, DAX Index is 1.25 times less risky than SEI INVESTMENTS. It trades about 0.08 of its potential returns per unit of risk. SEI INVESTMENTS is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,317 in SEI INVESTMENTS on August 28, 2024 and sell it today you would earn a total of 2,433 from holding SEI INVESTMENTS or generate 45.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. SEI INVESTMENTS
Performance |
| Timeline |
DAX Index and SEI INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
SEI INVESTMENTS
Pair trading matchups for SEI INVESTMENTS
Pair Trading with DAX Index and SEI INVESTMENTS
The main advantage of trading using opposite DAX Index and SEI INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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's long position.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
| SEI INVESTMENTS vs. TAL Education Group | SEI INVESTMENTS vs. SWISS WATER DECAFFCOFFEE | SEI INVESTMENTS vs. DeVry Education Group | SEI INVESTMENTS vs. Grand Canyon Education |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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