Correlation Between Phenixfin and SEI Investments
Can any of the company-specific risk be diversified away by investing in both Phenixfin 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 Phenixfin and SEI Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phenixfin and SEI Investments, you can compare the effects of market volatilities on Phenixfin 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 Phenixfin with a short position of SEI Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phenixfin and SEI Investments.
Diversification Opportunities for Phenixfin and SEI Investments
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Phenixfin and SEI is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Phenixfin and SEI Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Investments and Phenixfin 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 Phenixfin 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 Phenixfin i.e., Phenixfin and SEI Investments go up and down completely randomly.
Pair Corralation between Phenixfin and SEI Investments
Considering the 90-day investment horizon Phenixfin is expected to generate 79.59 times more return on investment than SEI Investments. However, Phenixfin is 79.59 times more volatile than SEI Investments. It trades about 0.08 of its potential returns per unit of risk. SEI Investments is currently generating about 0.1 per unit of risk. If you would invest 4,248 in Phenixfin on November 3, 2024 and sell it today you would earn a total of 677.00 from holding Phenixfin or generate 15.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.55% |
| Values | Daily Returns |
Phenixfin vs. SEI Investments
Performance |
| Timeline |
| Phenixfin |
| SEI Investments |
Phenixfin and SEI Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phenixfin and SEI Investments
The main advantage of trading using opposite Phenixfin and SEI Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phenixfin 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.| Phenixfin vs. MFS Investment Grade | Phenixfin vs. Eaton Vance National | Phenixfin vs. Federated Premier Municipal | Phenixfin vs. Blackrock Muniholdings Ny |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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