Correlation Between SEI Investments and BRISTOL
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By analyzing existing cross correlation between SEI Investments and BRISTOL MYERS SQUIBB CO, you can compare the effects of market volatilities on SEI Investments and BRISTOL 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 BRISTOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and BRISTOL.
Diversification Opportunities for SEI Investments and BRISTOL
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between SEI and BRISTOL is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and BRISTOL MYERS SQUIBB CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRISTOL MYERS SQUIBB 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 BRISTOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRISTOL MYERS SQUIBB has no effect on the direction of SEI Investments i.e., SEI Investments and BRISTOL go up and down completely randomly.
Pair Corralation between SEI Investments and BRISTOL
Given the investment horizon of 90 days SEI Investments is expected to generate 2.0 times less return on investment than BRISTOL. But when comparing it to its historical volatility, SEI Investments is 2.6 times less risky than BRISTOL. It trades about 0.29 of its potential returns per unit of risk. BRISTOL MYERS SQUIBB CO is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 9,428 in BRISTOL MYERS SQUIBB CO on September 15, 2024 and sell it today you would earn a total of 986.00 from holding BRISTOL MYERS SQUIBB CO or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI Investments vs. BRISTOL MYERS SQUIBB CO
Performance |
| Timeline |
| SEI Investments |
| BRISTOL MYERS SQUIBB |
SEI Investments and BRISTOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and BRISTOL
The main advantage of trading using opposite SEI Investments and BRISTOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, BRISTOL 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 BRISTOL will offset losses from the drop in BRISTOL'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 |
| BRISTOL vs. Acco Brands | BRISTOL vs. Universal Technical Institute | BRISTOL vs. SEI Investments | BRISTOL vs. AMREP |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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