Correlation Between SEI INVESTMENTS and GLG LIFE
Can any of the company-specific risk be diversified away by investing in both SEI INVESTMENTS and GLG LIFE 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 GLG LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI INVESTMENTS and GLG LIFE TECH, you can compare the effects of market volatilities on SEI INVESTMENTS and GLG LIFE 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 GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI INVESTMENTS and GLG LIFE.
Diversification Opportunities for SEI INVESTMENTS and GLG LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SEI and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SEI INVESTMENTS and GLG LIFE TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLG LIFE TECH 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 GLG LIFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLG LIFE TECH has no effect on the direction of SEI INVESTMENTS i.e., SEI INVESTMENTS and GLG LIFE go up and down completely randomly.
Pair Corralation between SEI INVESTMENTS and GLG LIFE
Assuming the 90 days trading horizon SEI INVESTMENTS is expected to generate 56.35 times less return on investment than GLG LIFE. But when comparing it to its historical volatility, SEI INVESTMENTS is 57.45 times less risky than GLG LIFE. It trades about 0.08 of its potential returns per unit of risk. GLG LIFE TECH is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1.10 in GLG LIFE TECH on September 3, 2024 and sell it today you would earn a total of 0.90 from holding GLG LIFE TECH or generate 81.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SEI INVESTMENTS vs. GLG LIFE TECH
Performance |
| Timeline |
| SEI INVESTMENTS |
| GLG LIFE TECH |
SEI INVESTMENTS and GLG LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI INVESTMENTS and GLG LIFE
The main advantage of trading using opposite SEI INVESTMENTS and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI INVESTMENTS position performs unexpectedly, GLG LIFE 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 GLG LIFE will offset losses from the drop in GLG LIFE's long position.| SEI INVESTMENTS vs. TIANDE CHEMICAL | SEI INVESTMENTS vs. CHEMICAL INDUSTRIES | SEI INVESTMENTS vs. Grupo Carso SAB | SEI INVESTMENTS vs. GRUPO CARSO A1 |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |