Correlation Between SEI Exchange and Listed Funds

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SEI Exchange and Listed Funds 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 Listed Funds 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 Listed Funds Trust, you can compare the effects of market volatilities on SEI Exchange and Listed Funds 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 Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Exchange and Listed Funds.

Diversification Opportunities for SEI Exchange and Listed Funds

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between SEI and Listed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SEI Exchange Traded and Listed Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Listed Funds Trust 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 Listed Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Listed Funds Trust has no effect on the direction of SEI Exchange i.e., SEI Exchange and Listed Funds go up and down completely randomly.

Pair Corralation between SEI Exchange and Listed Funds

Given the investment horizon of 90 days SEI Exchange Traded is expected to generate 1.31 times more return on investment than Listed Funds. However, SEI Exchange is 1.31 times more volatile than Listed Funds Trust. It trades about 0.1 of its potential returns per unit of risk. Listed Funds Trust is currently generating about 0.05 per unit of risk. If you would invest  2,632  in SEI Exchange Traded on November 3, 2024 and sell it today you would earn a total of  354.00  from holding SEI Exchange Traded or generate 13.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

SEI Exchange Traded  vs.  Listed Funds Trust

 Performance 
       Timeline  
SEI Exchange Traded 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Modest
Over the last 90 days SEI Exchange Traded has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, SEI Exchange is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Listed Funds Trust 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
OK
Over the last 90 days Listed Funds Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Listed Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

SEI Exchange and Listed Funds Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SEI Exchange and Listed Funds

The main advantage of trading using opposite SEI Exchange and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Exchange position performs unexpectedly, Listed Funds 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 Listed Funds will offset losses from the drop in Listed Funds' long position.
The idea behind SEI Exchange Traded and Listed Funds Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

Other Complementary Tools

Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas