Correlation Between SEI INVESTMENTS and Eidesvik Offshore

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

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

Diversification Opportunities for SEI INVESTMENTS and Eidesvik Offshore

0.62

Correlation Coefficient

SEI INVESTMENTS  Eidesvik Offshore

Poor diversification

The 3 months correlation between SEI and Eidesvik is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SEI INVESTMENTS and Eidesvik Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eidesvik Offshore ASA 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 Eidesvik Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eidesvik Offshore ASA has no effect on the direction of SEI INVESTMENTS i.e., SEI INVESTMENTS and Eidesvik Offshore go up and down completely randomly.

Pair Corralation between SEI INVESTMENTS and Eidesvik Offshore

Assuming the 90 days trading horizon SEI INVESTMENTS is expected to generate 0.5 times more return on investment than Eidesvik Offshore. However, SEI INVESTMENTS is 2.01 times less risky than Eidesvik Offshore. It trades about 0.2 of its potential returns per unit of risk. Eidesvik Offshore ASA is currently generating about 0.09 per unit of risk. If you would invest  6,910  in SEI INVESTMENTS on April 25, 2025 and sell it today you would earn a total of  990.00  from holding SEI INVESTMENTS or generate 14.33% return on investment over 90 days.

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

SEI INVESTMENTS  vs.  Eidesvik Offshore ASA

SEI INVESTMENTS

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SEI INVESTMENTS are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SEI INVESTMENTS unveiled solid returns over the last few months and may actually be approaching a breakup point.

Eidesvik Offshore ASA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eidesvik Offshore ASA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Eidesvik Offshore unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SEI INVESTMENTS and Eidesvik Offshore

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

The idea behind SEI INVESTMENTS and Eidesvik Offshore ASA 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.