Correlation Between SEI Investments and BAKER
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By analyzing existing cross correlation between SEI Investments and BAKER HUGHES A, you can compare the effects of market volatilities on SEI Investments and BAKER 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 BAKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and BAKER.
Diversification Opportunities for SEI Investments and BAKER
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SEI and BAKER is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and BAKER HUGHES A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAKER HUGHES A 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 BAKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAKER HUGHES A has no effect on the direction of SEI Investments i.e., SEI Investments and BAKER go up and down completely randomly.
Pair Corralation between SEI Investments and BAKER
Given the investment horizon of 90 days SEI Investments is expected to generate 1.33 times more return on investment than BAKER. However, SEI Investments is 1.33 times more volatile than BAKER HUGHES A. It trades about 0.24 of its potential returns per unit of risk. BAKER HUGHES A is currently generating about -0.05 per unit of risk. If you would invest 6,887 in SEI Investments on September 26, 2024 and sell it today you would earn a total of 1,559 from holding SEI Investments or generate 22.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 87.3% |
Values | Daily Returns |
SEI Investments vs. BAKER HUGHES A
Performance |
Timeline |
SEI Investments |
BAKER HUGHES A |
SEI Investments and BAKER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SEI Investments and BAKER
The main advantage of trading using opposite SEI Investments and BAKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, BAKER 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 BAKER will offset losses from the drop in BAKER's long position.SEI Investments vs. Commerce Bancshares | SEI Investments vs. RLI Corp | SEI Investments vs. Westamerica Bancorporation | SEI Investments vs. Brown Brown |
BAKER vs. AEP TEX INC | BAKER vs. US BANK NATIONAL | BAKER vs. Brightsphere Investment Group | BAKER vs. Neurocrine Biosciences |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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