Correlation Between SEI INVESTMENTS and Sibanye Stillwater
Can any of the company-specific risk be diversified away by investing in both SEI INVESTMENTS and Sibanye Stillwater 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 Sibanye Stillwater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI INVESTMENTS and Sibanye Stillwater Limited, you can compare the effects of market volatilities on SEI INVESTMENTS and Sibanye Stillwater 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 Sibanye Stillwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI INVESTMENTS and Sibanye Stillwater.
Diversification Opportunities for SEI INVESTMENTS and Sibanye Stillwater
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SEI and Sibanye is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SEI INVESTMENTS and Sibanye Stillwater Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sibanye Stillwater 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 Sibanye Stillwater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sibanye Stillwater has no effect on the direction of SEI INVESTMENTS i.e., SEI INVESTMENTS and Sibanye Stillwater go up and down completely randomly.
Pair Corralation between SEI INVESTMENTS and Sibanye Stillwater
Assuming the 90 days trading horizon SEI INVESTMENTS is expected to generate 0.24 times more return on investment than Sibanye Stillwater. However, SEI INVESTMENTS is 4.19 times less risky than Sibanye Stillwater. It trades about 0.53 of its potential returns per unit of risk. Sibanye Stillwater Limited is currently generating about -0.05 per unit of risk. If you would invest 7,500 in SEI INVESTMENTS on September 13, 2024 and sell it today you would earn a total of 500.00 from holding SEI INVESTMENTS or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI INVESTMENTS vs. Sibanye Stillwater Limited
Performance |
| Timeline |
| SEI INVESTMENTS |
| Sibanye Stillwater |
SEI INVESTMENTS and Sibanye Stillwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI INVESTMENTS and Sibanye Stillwater
The main advantage of trading using opposite SEI INVESTMENTS and Sibanye Stillwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI INVESTMENTS position performs unexpectedly, Sibanye Stillwater 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 Sibanye Stillwater will offset losses from the drop in Sibanye Stillwater's long position.| SEI INVESTMENTS vs. Apple Inc | SEI INVESTMENTS vs. Apple Inc | SEI INVESTMENTS vs. Apple Inc | SEI INVESTMENTS vs. Apple Inc |
| Sibanye Stillwater vs. EMBARK EDUCATION LTD | Sibanye Stillwater vs. SEI INVESTMENTS | Sibanye Stillwater vs. Chuangs China Investments | Sibanye Stillwater vs. Strategic Education |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |