Correlation Between Stet California and Sei Insti
Can any of the company-specific risk be diversified away by investing in both Stet California and Sei Insti 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 Stet California and Sei Insti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stet California Municipal and Sei Insti Mgd, you can compare the effects of market volatilities on Stet California and Sei Insti 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 Stet California with a short position of Sei Insti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stet California and Sei Insti.
Diversification Opportunities for Stet California and Sei Insti
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stet and Sei is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Stet California Municipal and Sei Insti Mgd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sei Insti Mgd and Stet California 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 Stet California Municipal are associated (or correlated) with Sei Insti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sei Insti Mgd has no effect on the direction of Stet California i.e., Stet California and Sei Insti go up and down completely randomly.
Pair Corralation between Stet California and Sei Insti
Assuming the 90 days horizon Stet California Municipal is expected to generate 0.4 times more return on investment than Sei Insti. However, Stet California Municipal is 2.48 times less risky than Sei Insti. It trades about 0.3 of its potential returns per unit of risk. Sei Insti Mgd is currently generating about 0.07 per unit of risk. If you would invest 984.00 in Stet California Municipal on April 24, 2025 and sell it today you would earn a total of 23.00 from holding Stet California Municipal or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Stet California Municipal vs. Sei Insti Mgd
Performance |
| Timeline |
| Stet California Municipal |
| Sei Insti Mgd |
Stet California and Sei Insti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stet California and Sei Insti
The main advantage of trading using opposite Stet California and Sei Insti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stet California position performs unexpectedly, Sei Insti 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 Insti will offset losses from the drop in Sei Insti's long position.| Stet California vs. Metropolitan West High | Stet California vs. Barings High Yield | Stet California vs. Msift High Yield | Stet California vs. Americafirst Monthly Risk On |
| Sei Insti vs. Calamos Dynamic Convertible | Sei Insti vs. Allianzgi Convertible Income | Sei Insti vs. Putnam Convertible Securities | Sei Insti vs. Gabelli Convertible And |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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