Correlation Between SEI Investments and Genesco
Can any of the company-specific risk be diversified away by investing in both SEI Investments and Genesco 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 Genesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and Genesco, you can compare the effects of market volatilities on SEI Investments and Genesco 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 Genesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and Genesco.
Diversification Opportunities for SEI Investments and Genesco
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SEI and Genesco is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and Genesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesco 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 Genesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesco has no effect on the direction of SEI Investments i.e., SEI Investments and Genesco go up and down completely randomly.
Pair Corralation between SEI Investments and Genesco
Given the investment horizon of 90 days SEI Investments is expected to generate 2.0 times less return on investment than Genesco. But when comparing it to its historical volatility, SEI Investments is 1.95 times less risky than Genesco. It trades about 0.12 of its potential returns per unit of risk. Genesco is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,693 in Genesco on November 3, 2024 and sell it today you would earn a total of 472.00 from holding Genesco or generate 12.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI Investments vs. Genesco
Performance |
| Timeline |
| SEI Investments |
| Genesco |
SEI Investments and Genesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and Genesco
The main advantage of trading using opposite SEI Investments and Genesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, Genesco 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 Genesco will offset losses from the drop in Genesco's long position.| SEI Investments vs. Commerce Bancshares | SEI Investments vs. RLI Corp | SEI Investments vs. Westamerica Bancorporation | SEI Investments vs. Brown Brown |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |