Correlation Between Diamond Hill and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Diamond Hill 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 Diamond Hill and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diamond Hill All and Segall Bryant Hamill, you can compare the effects of market volatilities on Diamond Hill 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 Diamond Hill with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamond Hill and Segall Bryant.
Diversification Opportunities for Diamond Hill and Segall Bryant
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Diamond and Segall is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Hill All 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 Diamond Hill 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 Diamond Hill All 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 Diamond Hill i.e., Diamond Hill and Segall Bryant go up and down completely randomly.
Pair Corralation between Diamond Hill and Segall Bryant
Assuming the 90 days horizon Diamond Hill All is expected to generate 1.48 times more return on investment than Segall Bryant. However, Diamond Hill is 1.48 times more volatile than Segall Bryant Hamill. It trades about 0.08 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.08 per unit of risk. If you would invest 1,779 in Diamond Hill All on August 28, 2024 and sell it today you would earn a total of 945.00 from holding Diamond Hill All or generate 53.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamond Hill All vs. Segall Bryant Hamill
Performance |
| Timeline |
| Diamond Hill All |
| Segall Bryant Hamill |
Diamond Hill and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamond Hill and Segall Bryant
The main advantage of trading using opposite Diamond Hill and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamond Hill 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.| Diamond Hill vs. Congress Mid Cap | Diamond Hill vs. Diamond Hill Long Short | Diamond Hill vs. Diamond Hill All | Diamond Hill vs. Diamond Hill Large |
| Segall Bryant vs. Morningstar Municipal Bond | Segall Bryant vs. Alliancebernstein National Municipal | Segall Bryant vs. Bbh Intermediate Municipal | Segall Bryant vs. Transamerica Intermediate Muni |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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