Correlation Between SEI INVESTMENTS and Sabra Health
Can any of the company-specific risk be diversified away by investing in both SEI INVESTMENTS and Sabra Health 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 Sabra Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI INVESTMENTS and Sabra Health Care, you can compare the effects of market volatilities on SEI INVESTMENTS and Sabra Health 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 Sabra Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI INVESTMENTS and Sabra Health.
Diversification Opportunities for SEI INVESTMENTS and Sabra Health
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SEI and Sabra is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding SEI INVESTMENTS and Sabra Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabra Health Care 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 Sabra Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabra Health Care has no effect on the direction of SEI INVESTMENTS i.e., SEI INVESTMENTS and Sabra Health go up and down completely randomly.
Pair Corralation between SEI INVESTMENTS and Sabra Health
Assuming the 90 days trading horizon SEI INVESTMENTS is expected to generate 0.82 times more return on investment than Sabra Health. However, SEI INVESTMENTS is 1.22 times less risky than Sabra Health. It trades about 0.46 of its potential returns per unit of risk. Sabra Health Care is currently generating about -0.15 per unit of risk. If you would invest 7,550 in SEI INVESTMENTS on September 19, 2024 and sell it today you would earn a total of 650.00 from holding SEI INVESTMENTS or generate 8.61% 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. Sabra Health Care
Performance |
| Timeline |
| SEI INVESTMENTS |
| Sabra Health Care |
SEI INVESTMENTS and Sabra Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI INVESTMENTS and Sabra Health
The main advantage of trading using opposite SEI INVESTMENTS and Sabra Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI INVESTMENTS position performs unexpectedly, Sabra Health 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 Sabra Health will offset losses from the drop in Sabra Health's long position.| SEI INVESTMENTS vs. Consolidated Communications Holdings | SEI INVESTMENTS vs. Singapore Telecommunications Limited | SEI INVESTMENTS vs. Highlight Communications AG | SEI INVESTMENTS vs. T MOBILE US |
| Sabra Health vs. Welltower | Sabra Health vs. Superior Plus Corp | Sabra Health vs. NMI Holdings | Sabra Health vs. SIVERS SEMICONDUCTORS AB |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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