Correlation Between First Citizens and SEI Investments

Can any of the company-specific risk be diversified away by investing in both First Citizens 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 First Citizens and SEI Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The First Citizens and SEI Investments, you can compare the effects of market volatilities on First Citizens 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 First Citizens with a short position of SEI Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Citizens and SEI Investments.

Diversification Opportunities for First Citizens and SEI Investments

0.48

Correlation Coefficient

First Citizens  SEI Investments

Very weak diversification

The 3 months correlation between First and SEI is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding The First Citizens and SEI Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Investments and First Citizens 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 The First Citizens 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 First Citizens i.e., First Citizens and SEI Investments go up and down completely randomly.

Pair Corralation between First Citizens and SEI Investments

Given the investment horizon of 90 days The First Citizens is expected to under-perform the SEI Investments. In addition to that, First Citizens is 13.81 times more volatile than SEI Investments. It trades about -0.17 of its total potential returns per unit of risk. SEI Investments is currently generating about 0.06 per unit of volatility. If you would invest  8,506  in SEI Investments on May 18, 2025 and sell it today you would earn a total of  313.00  from holding SEI Investments or generate 3.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	46.03%
Values	Daily Returns

The First Citizens  vs.  SEI Investments

First Citizens

Risk-Adjusted Performance

Weakest

Over the last 90 days The First Citizens has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

SEI Investments

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in SEI Investments are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward indicators, SEI Investments is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with First Citizens and SEI Investments

The main advantage of trading using opposite First Citizens and SEI Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Citizens 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.

The idea behind The First Citizens and SEI Investments pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.