Correlation Between GEELY AUTOMOBILE and SEI INVESTMENTS
Can any of the company-specific risk be diversified away by investing in both GEELY AUTOMOBILE 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 GEELY AUTOMOBILE and SEI INVESTMENTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEELY AUTOMOBILE and SEI INVESTMENTS, you can compare the effects of market volatilities on GEELY AUTOMOBILE 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 GEELY AUTOMOBILE with a short position of SEI INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEELY AUTOMOBILE and SEI INVESTMENTS.
Diversification Opportunities for GEELY AUTOMOBILE and SEI INVESTMENTS
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GEELY and SEI is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding GEELY AUTOMOBILE and SEI INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI INVESTMENTS and GEELY AUTOMOBILE 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 GEELY AUTOMOBILE 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 GEELY AUTOMOBILE i.e., GEELY AUTOMOBILE and SEI INVESTMENTS go up and down completely randomly.
Pair Corralation between GEELY AUTOMOBILE and SEI INVESTMENTS
Assuming the 90 days trading horizon GEELY AUTOMOBILE is expected to generate 3.2 times less return on investment than SEI INVESTMENTS. In addition to that, GEELY AUTOMOBILE is 2.12 times more volatile than SEI INVESTMENTS. It trades about 0.08 of its total potential returns per unit of risk. SEI INVESTMENTS is currently generating about 0.57 per unit of volatility. If you would invest 6,650 in SEI INVESTMENTS on September 1, 2024 and sell it today you would earn a total of 1,150 from holding SEI INVESTMENTS or generate 17.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GEELY AUTOMOBILE vs. SEI INVESTMENTS
Performance |
| Timeline |
| GEELY AUTOMOBILE |
| SEI INVESTMENTS |
GEELY AUTOMOBILE and SEI INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEELY AUTOMOBILE and SEI INVESTMENTS
The main advantage of trading using opposite GEELY AUTOMOBILE and SEI INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEELY AUTOMOBILE 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.| GEELY AUTOMOBILE vs. SIVERS SEMICONDUCTORS AB | GEELY AUTOMOBILE vs. Darden Restaurants | GEELY AUTOMOBILE vs. Reliance Steel Aluminum | GEELY AUTOMOBILE vs. Q2M Managementberatung AG |
| SEI INVESTMENTS vs. EHEALTH | SEI INVESTMENTS vs. HEALTHCARE REAL A | SEI INVESTMENTS vs. NXP Semiconductors NV | SEI INVESTMENTS vs. Natural Health Trends |
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.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |