Correlation Between Baron Health and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Baron Health and Segall Bryant 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 Baron Health and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Health Care and Segall Bryant Hamill, you can compare the effects of market volatilities on Baron Health and Segall Bryant 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 Baron Health with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Segall Bryant.
Diversification Opportunities for Baron Health and Segall Bryant
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baron and Segall is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care and Segall Bryant Hamill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segall Bryant Hamill and Baron Health 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 Baron Health Care are associated (or correlated) with Segall Bryant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Segall Bryant Hamill has no effect on the direction of Baron Health i.e., Baron Health and Segall Bryant go up and down completely randomly.
Pair Corralation between Baron Health and Segall Bryant
Assuming the 90 days horizon Baron Health is expected to generate 4.02 times less return on investment than Segall Bryant. But when comparing it to its historical volatility, Baron Health Care is 1.62 times less risky than Segall Bryant. It trades about 0.04 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,414 in Segall Bryant Hamill on September 1, 2024 and sell it today you would earn a total of 269.00 from holding Segall Bryant Hamill or generate 19.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Baron Health Care vs. Segall Bryant Hamill
Performance |
| Timeline |
| Baron Health Care |
| Segall Bryant Hamill |
Baron Health and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and Segall Bryant
The main advantage of trading using opposite Baron Health and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health position performs unexpectedly, Segall Bryant 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 Segall Bryant will offset losses from the drop in Segall Bryant's long position.| Baron Health vs. California High Yield Municipal | Baron Health vs. Franklin High Income | Baron Health vs. T Rowe Price | Baron Health vs. Needham Aggressive Growth |
| Segall Bryant vs. Bbh Partner Fund | Segall Bryant vs. Eic Value Fund | Segall Bryant vs. Qs Growth Fund | Segall Bryant vs. Nasdaq 100 Index Fund |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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