Correlation Between SEI INVESTMENTS and Geely Automobile
Can any of the company-specific risk be diversified away by investing in both SEI INVESTMENTS and Geely Automobile 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 Geely Automobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI INVESTMENTS and Geely Automobile Holdings, you can compare the effects of market volatilities on SEI INVESTMENTS and Geely Automobile 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 Geely Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI INVESTMENTS and Geely Automobile.
Diversification Opportunities for SEI INVESTMENTS and Geely Automobile
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SEI and Geely is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding SEI INVESTMENTS and Geely Automobile Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geely Automobile 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 Geely Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geely Automobile Holdings has no effect on the direction of SEI INVESTMENTS i.e., SEI INVESTMENTS and Geely Automobile go up and down completely randomly.
Pair Corralation between SEI INVESTMENTS and Geely Automobile
Assuming the 90 days trading horizon SEI INVESTMENTS is expected to generate 0.78 times more return on investment than Geely Automobile. However, SEI INVESTMENTS is 1.27 times less risky than Geely Automobile. It trades about 0.05 of its potential returns per unit of risk. Geely Automobile Holdings is currently generating about -0.24 per unit of risk. If you would invest 7,852 in SEI INVESTMENTS on October 10, 2024 and sell it today you would earn a total of 98.00 from holding SEI INVESTMENTS or generate 1.25% 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. Geely Automobile Holdings
Performance |
| Timeline |
| SEI INVESTMENTS |
| Geely Automobile Holdings |
SEI INVESTMENTS and Geely Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI INVESTMENTS and Geely Automobile
The main advantage of trading using opposite SEI INVESTMENTS and Geely Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI INVESTMENTS position performs unexpectedly, Geely Automobile 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 Geely Automobile will offset losses from the drop in Geely Automobile's long position.| SEI INVESTMENTS vs. Astral Foods Limited | SEI INVESTMENTS vs. PREMIER FOODS | SEI INVESTMENTS vs. GWILLI FOOD | SEI INVESTMENTS vs. Waste Management |
| Geely Automobile vs. Information Services International Dentsu | Geely Automobile vs. Synchrony Financial | Geely Automobile vs. Virtu Financial | Geely Automobile vs. The Hanover Insurance |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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