Correlation Between SEI INVESTMENTS and Crown Holdings
Can any of the company-specific risk be diversified away by investing in both SEI INVESTMENTS and Crown Holdings 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 Crown Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI INVESTMENTS and Crown Holdings, you can compare the effects of market volatilities on SEI INVESTMENTS and Crown Holdings 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 Crown Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI INVESTMENTS and Crown Holdings.
Diversification Opportunities for SEI INVESTMENTS and Crown Holdings
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SEI and Crown is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SEI INVESTMENTS and Crown Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Holdings 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 Crown Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Holdings has no effect on the direction of SEI INVESTMENTS i.e., SEI INVESTMENTS and Crown Holdings go up and down completely randomly.
Pair Corralation between SEI INVESTMENTS and Crown Holdings
Assuming the 90 days trading horizon SEI INVESTMENTS is expected to generate 0.5 times more return on investment than Crown Holdings. However, SEI INVESTMENTS is 2.01 times less risky than Crown Holdings. It trades about 0.08 of its potential returns per unit of risk. Crown Holdings is currently generating about 0.02 per unit of risk. If you would invest 5,624 in SEI INVESTMENTS on September 3, 2024 and sell it today you would earn a total of 2,176 from holding SEI INVESTMENTS or generate 38.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI INVESTMENTS vs. Crown Holdings
Performance |
| Timeline |
| SEI INVESTMENTS |
| Crown Holdings |
SEI INVESTMENTS and Crown Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI INVESTMENTS and Crown Holdings
The main advantage of trading using opposite SEI INVESTMENTS and Crown Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI INVESTMENTS position performs unexpectedly, Crown Holdings 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 Crown Holdings will offset losses from the drop in Crown Holdings' long position.| SEI INVESTMENTS vs. TIANDE CHEMICAL | SEI INVESTMENTS vs. CHEMICAL INDUSTRIES | SEI INVESTMENTS vs. Grupo Carso SAB | SEI INVESTMENTS vs. GRUPO CARSO A1 |
| Crown Holdings vs. Gaztransport Technigaz SA | Crown Holdings vs. NTG Nordic Transport | Crown Holdings vs. SEI INVESTMENTS | Crown Holdings vs. BROADSTNET LEADL 00025 |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |