Correlation Between SEI Investments and Deutsche Lufthansa
Can any of the company-specific risk be diversified away by investing in both SEI Investments and Deutsche Lufthansa 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 Deutsche Lufthansa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and Deutsche Lufthansa AG, you can compare the effects of market volatilities on SEI Investments and Deutsche Lufthansa 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 Deutsche Lufthansa. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and Deutsche Lufthansa.
Diversification Opportunities for SEI Investments and Deutsche Lufthansa
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SEI and Deutsche is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and Deutsche Lufthansa AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Lufthansa 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 Deutsche Lufthansa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Lufthansa has no effect on the direction of SEI Investments i.e., SEI Investments and Deutsche Lufthansa go up and down completely randomly.
Pair Corralation between SEI Investments and Deutsche Lufthansa
If you would invest 6,031 in SEI Investments on September 12, 2024 and sell it today you would earn a total of 2,511 from holding SEI Investments or generate 41.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SEI Investments vs. Deutsche Lufthansa AG
Performance |
| Timeline |
| SEI Investments |
| Deutsche Lufthansa |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SEI Investments and Deutsche Lufthansa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and Deutsche Lufthansa
The main advantage of trading using opposite SEI Investments and Deutsche Lufthansa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, Deutsche Lufthansa 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 Deutsche Lufthansa will offset losses from the drop in Deutsche Lufthansa's long position.| SEI Investments vs. Stellus Capital Investment | SEI Investments vs. Prospect Capital | SEI Investments vs. Gladstone Capital | SEI Investments vs. Main Street Capital |
| Deutsche Lufthansa vs. Evertz Technologies Limited | Deutsche Lufthansa vs. Asure Software | Deutsche Lufthansa vs. Nuvalent | Deutsche Lufthansa vs. Lipocine |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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