Correlation Between SEI Exchange and Global X
Can any of the company-specific risk be diversified away by investing in both SEI Exchange and Global X 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 Exchange and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Exchange Traded and Global X Funds, you can compare the effects of market volatilities on SEI Exchange and Global X 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 Exchange with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Exchange and Global X.
Diversification Opportunities for SEI Exchange and Global X
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between SEI and Global is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding SEI Exchange Traded and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and SEI Exchange 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 Exchange Traded are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of SEI Exchange i.e., SEI Exchange and Global X go up and down completely randomly.
Pair Corralation between SEI Exchange and Global X
Given the investment horizon of 90 days SEI Exchange Traded is expected to generate 0.78 times more return on investment than Global X. However, SEI Exchange Traded is 1.29 times less risky than Global X. It trades about 0.44 of its potential returns per unit of risk. Global X Funds is currently generating about -0.17 per unit of risk. If you would invest 2,910 in SEI Exchange Traded on September 4, 2024 and sell it today you would earn a total of 170.00 from holding SEI Exchange Traded or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI Exchange Traded vs. Global X Funds
Performance |
| Timeline |
| SEI Exchange Traded |
| Global X Funds |
SEI Exchange and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Exchange and Global X
The main advantage of trading using opposite SEI Exchange and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Exchange position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| SEI Exchange vs. SEI Exchange Traded | SEI Exchange vs. SEI Exchange Traded | SEI Exchange vs. SEI Exchange Traded | SEI Exchange vs. Listed Funds Trust |
| Global X vs. iShares Dividend and | Global X vs. Martin Currie Sustainable | Global X vs. VictoryShares THB Mid | Global X vs. Mast Global Battery |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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