Correlation Between Barings Global and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Barings Global 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 Barings Global and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Floating and Segall Bryant Hamill, you can compare the effects of market volatilities on Barings Global 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 Barings Global with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Segall Bryant.
Diversification Opportunities for Barings Global and Segall Bryant
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barings and Segall is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating 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 Barings Global 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 Barings Global Floating 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 Barings Global i.e., Barings Global and Segall Bryant go up and down completely randomly.
Pair Corralation between Barings Global and Segall Bryant
Assuming the 90 days horizon Barings Global is expected to generate 1.26 times less return on investment than Segall Bryant. But when comparing it to its historical volatility, Barings Global Floating is 4.52 times less risky than Segall Bryant. It trades about 0.22 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 912.00 in Segall Bryant Hamill on September 4, 2024 and sell it today you would earn a total of 248.00 from holding Segall Bryant Hamill or generate 27.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Global Floating vs. Segall Bryant Hamill
Performance |
| Timeline |
| Barings Global Floating |
| Segall Bryant Hamill |
Barings Global and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Segall Bryant
The main advantage of trading using opposite Barings Global and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global 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.| Barings Global vs. Dreyfusstandish Global Fixed | Barings Global vs. Morningstar Global Income | Barings Global vs. Franklin Mutual Global | Barings Global vs. Ab Global Real |
| Segall Bryant vs. Mid Cap Value Profund | Segall Bryant vs. Ultramid Cap Profund Ultramid Cap | Segall Bryant vs. Boston Partners Small |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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