Correlation Between SEI Investments and Carlyle
Can any of the company-specific risk be diversified away by investing in both SEI Investments and Carlyle 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 SEI Investments and Carlyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and Carlyle Group, you can compare the effects of market volatilities on SEI Investments and Carlyle 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 SEI Investments with a short position of Carlyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and Carlyle.
Diversification Opportunities for SEI Investments and Carlyle
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SEI and Carlyle is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group and SEI Investments 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 SEI Investments are associated (or correlated) with Carlyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlyle Group has no effect on the direction of SEI Investments i.e., SEI Investments and Carlyle go up and down completely randomly.
Pair Corralation between SEI Investments and Carlyle
Given the investment horizon of 90 days SEI Investments is expected to generate 0.69 times more return on investment than Carlyle. However, SEI Investments is 1.45 times less risky than Carlyle. It trades about -0.05 of its potential returns per unit of risk. Carlyle Group is currently generating about -0.16 per unit of risk. If you would invest 8,348 in SEI Investments on November 18, 2024 and sell it today you would lose (120.00) from holding SEI Investments or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI Investments vs. Carlyle Group
Performance |
| Timeline |
| SEI Investments |
| Carlyle Group |
SEI Investments and Carlyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and Carlyle
The main advantage of trading using opposite SEI Investments and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, Carlyle 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 Carlyle will offset losses from the drop in Carlyle's long position.| SEI Investments vs. Commerce Bancshares | SEI Investments vs. RLI Corp | SEI Investments vs. Westamerica Bancorporation | SEI Investments vs. Brown Brown |
| Carlyle vs. Horizon Space Acquisition | Carlyle vs. Erayak Power Solution | Carlyle vs. AlphaTime Acquisition Corp | Carlyle vs. Israel Acquisitions Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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