Correlation Between SEI Investments and First Republic
Can any of the company-specific risk be diversified away by investing in both SEI Investments and First Republic 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 First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and First Republic Bank, you can compare the effects of market volatilities on SEI Investments and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and First Republic.
Diversification Opportunities for SEI Investments and First Republic
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SEI and First is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of SEI Investments i.e., SEI Investments and First Republic go up and down completely randomly.
Pair Corralation between SEI Investments and First Republic
If you would invest 8,065 in SEI Investments on September 14, 2024 and sell it today you would earn a total of 593.00 from holding SEI Investments or generate 7.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
SEI Investments vs. First Republic Bank
Performance |
| Timeline |
| SEI Investments |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SEI Investments and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and First Republic
The main advantage of trading using opposite SEI Investments and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| SEI Investments vs. Visa Class A | SEI Investments vs. Diamond Hill Investment | SEI Investments vs. Distoken Acquisition | SEI Investments vs. AllianceBernstein Holding LP |
| First Republic vs. Entegris | First Republic vs. SEI Investments | First Republic vs. IPG Photonics | First Republic vs. Analog Devices |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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