Correlation Between Black Oak and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Black Oak 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 Black Oak and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Oak Emerging and Segall Bryant Hamill, you can compare the effects of market volatilities on Black Oak 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 Black Oak with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Oak and Segall Bryant.
Diversification Opportunities for Black Oak and Segall Bryant
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Black and Segall is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Black Oak Emerging 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 Black Oak 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 Black Oak Emerging 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 Black Oak i.e., Black Oak and Segall Bryant go up and down completely randomly.
Pair Corralation between Black Oak and Segall Bryant
Assuming the 90 days horizon Black Oak Emerging is expected to under-perform the Segall Bryant. In addition to that, Black Oak is 2.59 times more volatile than Segall Bryant Hamill. It trades about -0.1 of its total potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.08 per unit of volatility. If you would invest 1,057 in Segall Bryant Hamill on October 25, 2024 and sell it today you would earn a total of 13.00 from holding Segall Bryant Hamill or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Black Oak Emerging vs. Segall Bryant Hamill
Performance |
| Timeline |
| Black Oak Emerging |
| Segall Bryant Hamill |
Black Oak and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Oak and Segall Bryant
The main advantage of trading using opposite Black Oak and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Oak 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.| Black Oak vs. Red Oak Technology | Black Oak vs. Pin Oak Equity | Black Oak vs. White Oak Select | Black Oak vs. Live Oak Health |
| Segall Bryant vs. Jpmorgan Emerging Markets | Segall Bryant vs. Growth Strategy Fund | Segall Bryant vs. Black Oak Emerging | Segall Bryant vs. Ashmore Emerging Markets |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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