Correlation Between ETRACS Monthly and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both ETRACS Monthly 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 ETRACS Monthly and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETRACS Monthly Pay and Segall Bryant Hamill, you can compare the effects of market volatilities on ETRACS Monthly 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 ETRACS Monthly with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETRACS Monthly and Segall Bryant.
Diversification Opportunities for ETRACS Monthly and Segall Bryant
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ETRACS and Segall is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding ETRACS Monthly Pay 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 ETRACS Monthly 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 ETRACS Monthly Pay 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 ETRACS Monthly i.e., ETRACS Monthly and Segall Bryant go up and down completely randomly.
Pair Corralation between ETRACS Monthly and Segall Bryant
Given the investment horizon of 90 days ETRACS Monthly is expected to generate 1.75 times less return on investment than Segall Bryant. In addition to that, ETRACS Monthly is 1.19 times more volatile than Segall Bryant Hamill. It trades about 0.18 of its total potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.38 per unit of volatility. If you would invest 3,087 in Segall Bryant Hamill on September 1, 2024 and sell it today you would earn a total of 237.00 from holding Segall Bryant Hamill or generate 7.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
ETRACS Monthly Pay vs. Segall Bryant Hamill
Performance |
| Timeline |
| ETRACS Monthly Pay |
| Segall Bryant Hamill |
ETRACS Monthly and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETRACS Monthly and Segall Bryant
The main advantage of trading using opposite ETRACS Monthly and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETRACS Monthly 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.| ETRACS Monthly vs. ProShares VIX Mid Term | ETRACS Monthly vs. iPath Series B | ETRACS Monthly vs. ProShares Short Russell2000 |
| Segall Bryant vs. FT Vest Equity | Segall Bryant vs. Northern Lights | Segall Bryant vs. Dimensional International High | Segall Bryant vs. Matthews China Discovery |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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