Correlation Between SEI INVESTMENTS and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both SEI INVESTMENTS and KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI INVESTMENTS and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on SEI INVESTMENTS and KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI INVESTMENTS and KIMBALL ELECTRONICS.
Diversification Opportunities for SEI INVESTMENTS and KIMBALL ELECTRONICS
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SEI and KIMBALL is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SEI INVESTMENTS and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMBALL ELECTRONICS has no effect on the direction of SEI INVESTMENTS i.e., SEI INVESTMENTS and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between SEI INVESTMENTS and KIMBALL ELECTRONICS
Assuming the 90 days trading horizon SEI INVESTMENTS is expected to generate 0.65 times more return on investment than KIMBALL ELECTRONICS. However, SEI INVESTMENTS is 1.53 times less risky than KIMBALL ELECTRONICS. It trades about 0.26 of its potential returns per unit of risk. KIMBALL ELECTRONICS is currently generating about -0.12 per unit of risk. If you would invest 7,156 in SEI INVESTMENTS on November 6, 2024 and sell it today you would earn a total of 1,244 from holding SEI INVESTMENTS or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI INVESTMENTS vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| SEI INVESTMENTS |
| KIMBALL ELECTRONICS |
SEI INVESTMENTS and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI INVESTMENTS and KIMBALL ELECTRONICS
The main advantage of trading using opposite SEI INVESTMENTS and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI INVESTMENTS position performs unexpectedly, KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS will offset losses from the drop in KIMBALL ELECTRONICS's long position.| SEI INVESTMENTS vs. Phibro Animal Health | SEI INVESTMENTS vs. CLOVER HEALTH INV | SEI INVESTMENTS vs. National Health Investors | SEI INVESTMENTS vs. INTERCONT HOTELS |
| KIMBALL ELECTRONICS vs. Fukuyama Transporting Co | KIMBALL ELECTRONICS vs. SOEDER SPORTFISKE AB | KIMBALL ELECTRONICS vs. GBS Software AG | KIMBALL ELECTRONICS vs. BII Railway Transportation |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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