Correlation Between U Haul and SEI Investments
Can any of the company-specific risk be diversified away by investing in both U Haul and SEI Investments 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 U Haul and SEI Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Haul Holding and SEI Investments, you can compare the effects of market volatilities on U Haul and SEI Investments 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 U Haul with a short position of SEI Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and SEI Investments.
Diversification Opportunities for U Haul and SEI Investments
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UHAL and SEI is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and SEI Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Investments and U Haul 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 U Haul Holding are associated (or correlated) with SEI Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEI Investments has no effect on the direction of U Haul i.e., U Haul and SEI Investments go up and down completely randomly.
Pair Corralation between U Haul and SEI Investments
Given the investment horizon of 90 days U Haul is expected to generate 4.21 times less return on investment than SEI Investments. In addition to that, U Haul is 1.3 times more volatile than SEI Investments. It trades about 0.06 of its total potential returns per unit of risk. SEI Investments is currently generating about 0.34 per unit of volatility. If you would invest 6,658 in SEI Investments on September 12, 2024 and sell it today you would earn a total of 1,916 from holding SEI Investments or generate 28.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Haul Holding vs. SEI Investments
Performance |
| Timeline |
| U Haul Holding |
| SEI Investments |
U Haul and SEI Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Haul and SEI Investments
The main advantage of trading using opposite U Haul and SEI Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul position performs unexpectedly, SEI Investments 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 SEI Investments will offset losses from the drop in SEI Investments' long position.| U Haul vs. Air Lease | U Haul vs. HE Equipment Services | U Haul vs. GATX Corporation | U Haul vs. Custom Truck One |
| SEI Investments vs. Commerce Bancshares | SEI Investments vs. RLI Corp | SEI Investments vs. Westamerica Bancorporation | SEI Investments vs. Brown Brown |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |