Correlation Between Fidelity Small and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Fidelity Small 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 Fidelity Small and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Small Cap and Segall Bryant Hamill, you can compare the effects of market volatilities on Fidelity Small 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 Fidelity Small with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Small and Segall Bryant.
Diversification Opportunities for Fidelity Small and Segall Bryant
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Fidelity and Segall is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Small Cap 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 Fidelity Small 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 Fidelity Small Cap 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 Fidelity Small i.e., Fidelity Small and Segall Bryant go up and down completely randomly.
Pair Corralation between Fidelity Small and Segall Bryant
Assuming the 90 days horizon Fidelity Small Cap is expected to generate 0.94 times more return on investment than Segall Bryant. However, Fidelity Small Cap is 1.07 times less risky than Segall Bryant. It trades about 0.31 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.25 per unit of risk. If you would invest 2,742 in Fidelity Small Cap on September 1, 2024 and sell it today you would earn a total of 301.00 from holding Fidelity Small Cap or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fidelity Small Cap vs. Segall Bryant Hamill
Performance |
| Timeline |
| Fidelity Small Cap |
| Segall Bryant Hamill |
Fidelity Small and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Small and Segall Bryant
The main advantage of trading using opposite Fidelity Small and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Small 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.| Fidelity Small vs. Fidelity Mid Cap | Fidelity Small vs. Fidelity International Index | Fidelity Small vs. Fidelity Bond Index | Fidelity Small vs. Fidelity Large Cap |
| Segall Bryant vs. The Gabelli Equity | Segall Bryant vs. Jpmorgan Equity Income | Segall Bryant vs. Ab Select Equity | Segall Bryant vs. Locorr Dynamic Equity |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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