Correlation Between PowerUp Acquisition and SEI Investments
Can any of the company-specific risk be diversified away by investing in both PowerUp Acquisition 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 PowerUp Acquisition and SEI Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PowerUp Acquisition Corp and SEI Investments, you can compare the effects of market volatilities on PowerUp Acquisition 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 PowerUp Acquisition with a short position of SEI Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of PowerUp Acquisition and SEI Investments.
Diversification Opportunities for PowerUp Acquisition and SEI Investments
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PowerUp and SEI is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding PowerUp Acquisition Corp and SEI Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Investments and PowerUp Acquisition 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 PowerUp Acquisition Corp 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 PowerUp Acquisition i.e., PowerUp Acquisition and SEI Investments go up and down completely randomly.
Pair Corralation between PowerUp Acquisition and SEI Investments
Given the investment horizon of 90 days PowerUp Acquisition is expected to generate 1.88 times less return on investment than SEI Investments. In addition to that, PowerUp Acquisition is 1.4 times more volatile than SEI Investments. It trades about 0.02 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 25, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PowerUp Acquisition Corp vs. SEI Investments
Performance |
| Timeline |
| PowerUp Acquisition Corp |
| SEI Investments |
PowerUp Acquisition and SEI Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PowerUp Acquisition and SEI Investments
The main advantage of trading using opposite PowerUp Acquisition and SEI Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PowerUp Acquisition 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.The idea behind PowerUp Acquisition Corp and SEI Investments pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| CEOs Directory Screen CEOs from public companies around the world |