Correlation Between SEI Investments and Fenbo Holdings
Can any of the company-specific risk be diversified away by investing in both SEI Investments and Fenbo Holdings 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 Fenbo Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and Fenbo Holdings Limited, you can compare the effects of market volatilities on SEI Investments and Fenbo Holdings 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 Fenbo Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and Fenbo Holdings.
Diversification Opportunities for SEI Investments and Fenbo Holdings
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SEI and Fenbo is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and Fenbo Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fenbo Holdings 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 Fenbo Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fenbo Holdings has no effect on the direction of SEI Investments i.e., SEI Investments and Fenbo Holdings go up and down completely randomly.
Pair Corralation between SEI Investments and Fenbo Holdings
Given the investment horizon of 90 days SEI Investments is expected to generate 1.92 times less return on investment than Fenbo Holdings. But when comparing it to its historical volatility, SEI Investments is 8.23 times less risky than Fenbo Holdings. It trades about 0.06 of its potential returns per unit of risk. Fenbo Holdings Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 444.00 in Fenbo Holdings Limited on September 3, 2024 and sell it today you would lose (240.00) from holding Fenbo Holdings Limited or give up 54.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 51.11% |
| Values | Daily Returns |
SEI Investments vs. Fenbo Holdings Limited
Performance |
| Timeline |
| SEI Investments |
| Fenbo Holdings |
SEI Investments and Fenbo Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and Fenbo Holdings
The main advantage of trading using opposite SEI Investments and Fenbo Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, Fenbo Holdings 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 Fenbo Holdings will offset losses from the drop in Fenbo Holdings' long position.| SEI Investments vs. Commerce Bancshares | SEI Investments vs. RLI Corp | SEI Investments vs. Westamerica Bancorporation | SEI Investments vs. Brown Brown |
| Fenbo Holdings vs. Solstad Offshore ASA | Fenbo Holdings vs. Canlan Ice Sports | Fenbo Holdings vs. Jutal Offshore Oil | Fenbo Holdings vs. Marine Products |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| 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 | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |