Correlation Between SEI INVESTMENTS and JPM INDIAN

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

By analyzing existing cross correlation between SEI INVESTMENTS and JPM INDIAN INVT, you can compare the effects of market volatilities on SEI INVESTMENTS and JPM INDIAN 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 JPM INDIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI INVESTMENTS and JPM INDIAN.

Diversification Opportunities for SEI INVESTMENTS and JPM INDIAN

0.29

Correlation Coefficient

SEI INVESTMENTS  JPM INDIAN

Modest diversification

The 3 months correlation between SEI and JPM is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding SEI INVESTMENTS and JPM INDIAN INVT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM INDIAN INVT 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 JPM INDIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPM INDIAN INVT has no effect on the direction of SEI INVESTMENTS i.e., SEI INVESTMENTS and JPM INDIAN go up and down completely randomly.

Pair Corralation between SEI INVESTMENTS and JPM INDIAN

Assuming the 90 days trading horizon SEI INVESTMENTS is expected to generate 0.62 times more return on investment than JPM INDIAN. However, SEI INVESTMENTS is 1.62 times less risky than JPM INDIAN. It trades about 0.14 of its potential returns per unit of risk. JPM INDIAN INVT is currently generating about 0.02 per unit of risk. If you would invest  6,960  in SEI INVESTMENTS on May 7, 2025 and sell it today you would earn a total of  690.00  from holding SEI INVESTMENTS or generate 9.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SEI INVESTMENTS  vs.  JPM INDIAN INVT

SEI INVESTMENTS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SEI INVESTMENTS are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SEI INVESTMENTS may actually be approaching a critical reversion point that can send shares even higher in September 2025.

JPM INDIAN INVT

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JPM INDIAN INVT are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, JPM INDIAN is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SEI INVESTMENTS and JPM INDIAN

The main advantage of trading using opposite SEI INVESTMENTS and JPM INDIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI INVESTMENTS position performs unexpectedly, JPM INDIAN 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 JPM INDIAN will offset losses from the drop in JPM INDIAN's long position.

The idea behind SEI INVESTMENTS and JPM INDIAN INVT 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.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.