Correlation Between SEI Investments and Lees Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both SEI Investments and Lees Pharmaceutical 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 Lees Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and Lees Pharmaceutical Holdings, you can compare the effects of market volatilities on SEI Investments and Lees Pharmaceutical 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 Lees Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and Lees Pharmaceutical.
Diversification Opportunities for SEI Investments and Lees Pharmaceutical
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SEI and Lees is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and Lees Pharmaceutical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lees Pharmaceutical 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 Lees Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lees Pharmaceutical has no effect on the direction of SEI Investments i.e., SEI Investments and Lees Pharmaceutical go up and down completely randomly.
Pair Corralation between SEI Investments and Lees Pharmaceutical
If you would invest 5,742 in SEI Investments on September 2, 2024 and sell it today you would earn a total of 2,521 from holding SEI Investments or generate 43.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.38% |
| Values | Daily Returns |
SEI Investments vs. Lees Pharmaceutical Holdings
Performance |
| Timeline |
| SEI Investments |
| Lees Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SEI Investments and Lees Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and Lees Pharmaceutical
The main advantage of trading using opposite SEI Investments and Lees Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, Lees Pharmaceutical 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 Lees Pharmaceutical will offset losses from the drop in Lees Pharmaceutical's long position.| SEI Investments vs. Visa Class A | SEI Investments vs. Diamond Hill Investment | SEI Investments vs. Distoken Acquisition | SEI Investments vs. Associated Capital Group |
| Lees Pharmaceutical vs. Kaltura | Lees Pharmaceutical vs. NETGEAR | Lees Pharmaceutical vs. Global Ship Lease | Lees Pharmaceutical vs. Ultra Clean Holdings |
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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