Correlation Between SEI Investments and Fidelis Insurance
Can any of the company-specific risk be diversified away by investing in both SEI Investments and Fidelis Insurance 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 Fidelis Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and Fidelis Insurance Holdings, you can compare the effects of market volatilities on SEI Investments and Fidelis Insurance 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 Fidelis Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and Fidelis Insurance.
Diversification Opportunities for SEI Investments and Fidelis Insurance
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SEI and Fidelis is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and Fidelis Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelis Insurance 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 Fidelis Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelis Insurance has no effect on the direction of SEI Investments i.e., SEI Investments and Fidelis Insurance go up and down completely randomly.
Pair Corralation between SEI Investments and Fidelis Insurance
Given the investment horizon of 90 days SEI Investments is expected to generate 37.31 times less return on investment than Fidelis Insurance. But when comparing it to its historical volatility, SEI Investments is 47.54 times less risky than Fidelis Insurance. It trades about 0.07 of its potential returns per unit of risk. Fidelis Insurance Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Fidelis Insurance Holdings on September 5, 2024 and sell it today you would earn a total of 2,024 from holding Fidelis Insurance Holdings or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 73.33% |
| Values | Daily Returns |
SEI Investments vs. Fidelis Insurance Holdings
Performance |
| Timeline |
| SEI Investments |
| Fidelis Insurance |
SEI Investments and Fidelis Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and Fidelis Insurance
The main advantage of trading using opposite SEI Investments and Fidelis Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, Fidelis Insurance 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 Fidelis Insurance will offset losses from the drop in Fidelis Insurance's long position.| SEI Investments vs. Visa Class A | SEI Investments vs. Deutsche Bank AG | SEI Investments vs. Dynex Capital |
| Fidelis Insurance vs. Harmony Gold Mining | Fidelis Insurance vs. Aegon NV ADR | Fidelis Insurance vs. Sun Life Financial | Fidelis Insurance vs. SEI Investments |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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