Correlation Between Disney and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Disney 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 Disney and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walt Disney and Segall Bryant Hamill, you can compare the effects of market volatilities on Disney 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 Disney with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and Segall Bryant.
Diversification Opportunities for Disney and Segall Bryant
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Disney and Segall is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney 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 Disney 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 Walt Disney 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 Disney i.e., Disney and Segall Bryant go up and down completely randomly.
Pair Corralation between Disney and Segall Bryant
Considering the 90-day investment horizon Walt Disney is expected to generate 1.35 times more return on investment than Segall Bryant. However, Disney is 1.35 times more volatile than Segall Bryant Hamill. It trades about 0.04 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.05 per unit of risk. If you would invest 10,185 in Walt Disney on November 28, 2024 and sell it today you would earn a total of 868.00 from holding Walt Disney or generate 8.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walt Disney vs. Segall Bryant Hamill
Performance |
| Timeline |
| Walt Disney |
| Segall Bryant Hamill |
Disney and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Disney and Segall Bryant
The main advantage of trading using opposite Disney and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney 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.| Disney vs. Roku Inc | Disney vs. AMC Entertainment Holdings | Disney vs. Paramount Global Class | Disney vs. Warner Bros Discovery |
| Segall Bryant vs. Davis Select International | Segall Bryant vs. Principal Value ETF | Segall Bryant vs. WisdomTree Emerging Markets | Segall Bryant vs. Ballast SmallMid Cap |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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