Correlation Between TRAVELERS and SEI Investments
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By analyzing existing cross correlation between TRAVELERS PANIES INC and SEI Investments, you can compare the effects of market volatilities on TRAVELERS 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 TRAVELERS with a short position of SEI Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRAVELERS and SEI Investments.
Diversification Opportunities for TRAVELERS and SEI Investments
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TRAVELERS and SEI is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding TRAVELERS PANIES INC and SEI Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Investments and TRAVELERS 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 TRAVELERS PANIES INC 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 TRAVELERS i.e., TRAVELERS and SEI Investments go up and down completely randomly.
Pair Corralation between TRAVELERS and SEI Investments
Assuming the 90 days trading horizon TRAVELERS is expected to generate 2.02 times less return on investment than SEI Investments. But when comparing it to its historical volatility, TRAVELERS PANIES INC is 1.04 times less risky than SEI Investments. It trades about 0.19 of its potential returns per unit of risk. SEI Investments is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 8,081 in SEI Investments on September 13, 2024 and sell it today you would earn a total of 550.00 from holding SEI Investments or generate 6.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 72.73% |
| Values | Daily Returns |
TRAVELERS PANIES INC vs. SEI Investments
Performance |
| Timeline |
| TRAVELERS PANIES INC |
| SEI Investments |
TRAVELERS and SEI Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRAVELERS and SEI Investments
The main advantage of trading using opposite TRAVELERS and SEI Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRAVELERS 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.| TRAVELERS vs. Chester Mining | TRAVELERS vs. Forsys Metals Corp | TRAVELERS vs. Enersys | TRAVELERS vs. Eldorado Gold Corp |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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