Correlation Between IShares ESG and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both IShares ESG 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 IShares ESG and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares ESG Aware and Segall Bryant Hamill, you can compare the effects of market volatilities on IShares ESG 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 IShares ESG with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares ESG and Segall Bryant.
Diversification Opportunities for IShares ESG and Segall Bryant
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Segall is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding iShares ESG Aware 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 IShares ESG 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 iShares ESG Aware 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 IShares ESG i.e., IShares ESG and Segall Bryant go up and down completely randomly.
Pair Corralation between IShares ESG and Segall Bryant
Given the investment horizon of 90 days IShares ESG is expected to generate 1.12 times less return on investment than Segall Bryant. But when comparing it to its historical volatility, iShares ESG Aware is 1.2 times less risky than Segall Bryant. It trades about 0.4 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.38 of returns per unit of risk over similar time horizon. 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 | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
iShares ESG Aware vs. Segall Bryant Hamill
Performance |
| Timeline |
| iShares ESG Aware |
| Segall Bryant Hamill |
IShares ESG and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares ESG and Segall Bryant
The main advantage of trading using opposite IShares ESG and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares ESG 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.| IShares ESG vs. Vanguard Total Stock | IShares ESG vs. SPDR SP 500 | IShares ESG vs. iShares Core SP | IShares ESG vs. Vanguard Dividend Appreciation |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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