Correlation Between SEI Investments and East Resources
Can any of the company-specific risk be diversified away by investing in both SEI Investments and East Resources 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 East Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and East Resources Acquisition, you can compare the effects of market volatilities on SEI Investments and East Resources 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 East Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and East Resources.
Diversification Opportunities for SEI Investments and East Resources
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SEI and East is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and East Resources Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Resources Acqui 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 East Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Resources Acqui has no effect on the direction of SEI Investments i.e., SEI Investments and East Resources go up and down completely randomly.
Pair Corralation between SEI Investments and East Resources
If you would invest 8,081 in SEI Investments on September 13, 2024 and sell it today you would earn a total of 461.00 from holding SEI Investments or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
SEI Investments vs. East Resources Acquisition
Performance |
| Timeline |
| SEI Investments |
| East Resources Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SEI Investments and East Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and East Resources
The main advantage of trading using opposite SEI Investments and East Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, East Resources 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 East Resources will offset losses from the drop in East Resources' long position.| SEI Investments vs. Commerce Bancshares | SEI Investments vs. RLI Corp | SEI Investments vs. Westamerica Bancorporation | SEI Investments vs. Brown Brown |
| East Resources vs. Axalta Coating Systems | East Resources vs. The Mosaic | East Resources vs. Summit Environmental | East Resources vs. Ironveld Plc |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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