Correlation Between SEI INVESTMENTS and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both SEI INVESTMENTS and Origin Agritech 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 Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI INVESTMENTS and Origin Agritech, you can compare the effects of market volatilities on SEI INVESTMENTS and Origin Agritech 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 Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI INVESTMENTS and Origin Agritech.
Diversification Opportunities for SEI INVESTMENTS and Origin Agritech
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SEI and Origin is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding SEI INVESTMENTS and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech 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 Origin Agritech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Agritech has no effect on the direction of SEI INVESTMENTS i.e., SEI INVESTMENTS and Origin Agritech go up and down completely randomly.
Pair Corralation between SEI INVESTMENTS and Origin Agritech
Assuming the 90 days trading horizon SEI INVESTMENTS is expected to generate 0.15 times more return on investment than Origin Agritech. However, SEI INVESTMENTS is 6.58 times less risky than Origin Agritech. It trades about 0.11 of its potential returns per unit of risk. Origin Agritech is currently generating about -0.01 per unit of risk. If you would invest 5,098 in SEI INVESTMENTS on October 29, 2024 and sell it today you would earn a total of 3,002 from holding SEI INVESTMENTS or generate 58.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI INVESTMENTS vs. Origin Agritech
Performance |
| Timeline |
| SEI INVESTMENTS |
| Origin Agritech |
SEI INVESTMENTS and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI INVESTMENTS and Origin Agritech
The main advantage of trading using opposite SEI INVESTMENTS and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI INVESTMENTS position performs unexpectedly, Origin Agritech 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 Origin Agritech will offset losses from the drop in Origin Agritech's long position.| SEI INVESTMENTS vs. Apple Inc | SEI INVESTMENTS vs. Apple Inc | SEI INVESTMENTS vs. Apple Inc | SEI INVESTMENTS vs. Apple Inc |
| Origin Agritech vs. De Grey Mining | Origin Agritech vs. MAGNUM MINING EXP | Origin Agritech vs. DAIRY FARM INTL | Origin Agritech vs. GRIFFIN MINING LTD |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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