Correlation Between SEI INVESTMENTS and KBC Ancora
Can any of the company-specific risk be diversified away by investing in both SEI INVESTMENTS and KBC Ancora 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 KBC Ancora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI INVESTMENTS and KBC Ancora SCA, you can compare the effects of market volatilities on SEI INVESTMENTS and KBC Ancora 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 KBC Ancora. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI INVESTMENTS and KBC Ancora.
Diversification Opportunities for SEI INVESTMENTS and KBC Ancora
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between SEI and KBC is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding SEI INVESTMENTS and KBC Ancora SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC Ancora SCA 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 KBC Ancora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC Ancora SCA has no effect on the direction of SEI INVESTMENTS i.e., SEI INVESTMENTS and KBC Ancora go up and down completely randomly.
Pair Corralation between SEI INVESTMENTS and KBC Ancora
Assuming the 90 days trading horizon SEI INVESTMENTS is expected to generate 0.5 times more return on investment than KBC Ancora. However, SEI INVESTMENTS is 2.0 times less risky than KBC Ancora. It trades about 0.53 of its potential returns per unit of risk. KBC Ancora SCA is currently generating about 0.03 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI INVESTMENTS vs. KBC Ancora SCA
Performance |
| Timeline |
| SEI INVESTMENTS |
| KBC Ancora SCA |
SEI INVESTMENTS and KBC Ancora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI INVESTMENTS and KBC Ancora
The main advantage of trading using opposite SEI INVESTMENTS and KBC Ancora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI INVESTMENTS position performs unexpectedly, KBC Ancora 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 KBC Ancora will offset losses from the drop in KBC Ancora's long position.| SEI INVESTMENTS vs. Apple Inc | SEI INVESTMENTS vs. Apple Inc | SEI INVESTMENTS vs. Apple Inc | SEI INVESTMENTS vs. Apple Inc |
| KBC Ancora vs. Vulcan Materials | KBC Ancora vs. Compagnie Plastic Omnium | KBC Ancora vs. Spirent Communications plc | KBC Ancora vs. Hyster Yale Materials Handling |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |