Correlation Between SEI Investments and Sun Country
Can any of the company-specific risk be diversified away by investing in both SEI Investments and Sun Country 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 Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and Sun Country Airlines, you can compare the effects of market volatilities on SEI Investments and Sun Country 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 Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and Sun Country.
Diversification Opportunities for SEI Investments and Sun Country
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SEI and Sun is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and Sun Country Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Country Airlines 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 Sun Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Country Airlines has no effect on the direction of SEI Investments i.e., SEI Investments and Sun Country go up and down completely randomly.
Pair Corralation between SEI Investments and Sun Country
Given the investment horizon of 90 days SEI Investments is expected to generate 0.34 times more return on investment than Sun Country. However, SEI Investments is 2.95 times less risky than Sun Country. It trades about 0.12 of its potential returns per unit of risk. Sun Country Airlines is currently generating about 0.01 per unit of risk. If you would invest 6,276 in SEI Investments on September 14, 2024 and sell it today you would earn a total of 2,244 from holding SEI Investments or generate 35.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI Investments vs. Sun Country Airlines
Performance |
| Timeline |
| SEI Investments |
| Sun Country Airlines |
SEI Investments and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and Sun Country
The main advantage of trading using opposite SEI Investments and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, Sun Country 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 Sun Country will offset losses from the drop in Sun Country'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 |
| Sun Country vs. Southwest Airlines | Sun Country vs. United Airlines Holdings | Sun Country vs. Frontier Group 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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