Correlation Between SEI Investments and Regions Financial
Can any of the company-specific risk be diversified away by investing in both SEI Investments and Regions Financial 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 Regions Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and Regions Financial, you can compare the effects of market volatilities on SEI Investments and Regions Financial 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 Regions Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and Regions Financial.
Diversification Opportunities for SEI Investments and Regions Financial
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SEI and Regions is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and Regions Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regions Financial 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 Regions Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regions Financial has no effect on the direction of SEI Investments i.e., SEI Investments and Regions Financial go up and down completely randomly.
Pair Corralation between SEI Investments and Regions Financial
Given the investment horizon of 90 days SEI Investments is expected to generate 1.52 times more return on investment than Regions Financial. However, SEI Investments is 1.52 times more volatile than Regions Financial. It trades about -0.07 of its potential returns per unit of risk. Regions Financial is currently generating about -0.21 per unit of risk. If you would invest 8,360 in SEI Investments on October 7, 2024 and sell it today you would lose (170.00) from holding SEI Investments or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI Investments vs. Regions Financial
Performance |
| Timeline |
| SEI Investments |
| Regions Financial |
SEI Investments and Regions Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and Regions Financial
The main advantage of trading using opposite SEI Investments and Regions Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, Regions Financial 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 Regions Financial will offset losses from the drop in Regions Financial's long position.| SEI Investments vs. Commerce Bancshares | SEI Investments vs. RLI Corp | SEI Investments vs. Westamerica Bancorporation | SEI Investments vs. Brown Brown |
| Regions Financial vs. CullenFrost Bankers | Regions Financial vs. Citizens Financial Group | Regions Financial vs. Cadence Bank | Regions Financial vs. Truist Financial |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |