Correlation Between SEI Investments and JIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both SEI Investments and JIN MEDICAL 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 JIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and JIN MEDICAL INTERNATIONAL, you can compare the effects of market volatilities on SEI Investments and JIN MEDICAL 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 JIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and JIN MEDICAL.
Diversification Opportunities for SEI Investments and JIN MEDICAL
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SEI and JIN is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and JIN MEDICAL INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIN MEDICAL INTERNATIONAL 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 JIN MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIN MEDICAL INTERNATIONAL has no effect on the direction of SEI Investments i.e., SEI Investments and JIN MEDICAL go up and down completely randomly.
Pair Corralation between SEI Investments and JIN MEDICAL
Given the investment horizon of 90 days SEI Investments is expected to generate 0.32 times more return on investment than JIN MEDICAL. However, SEI Investments is 3.17 times less risky than JIN MEDICAL. It trades about -0.17 of its potential returns per unit of risk. JIN MEDICAL INTERNATIONAL is currently generating about -0.08 per unit of risk. If you would invest 7,693 in SEI Investments on January 4, 2025 and sell it today you would lose (791.00) from holding SEI Investments or give up 10.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI Investments vs. JIN MEDICAL INTERNATIONAL
Performance |
| Timeline |
| SEI Investments |
| JIN MEDICAL INTERNATIONAL |
SEI Investments and JIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and JIN MEDICAL
The main advantage of trading using opposite SEI Investments and JIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, JIN MEDICAL 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 JIN MEDICAL will offset losses from the drop in JIN MEDICAL's long position.| SEI Investments vs. Manaris Corp | SEI Investments vs. Aquagold International | SEI Investments vs. Morningstar Unconstrained Allocation | SEI Investments vs. Thrivent High Yield |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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