Correlation Between American Funds and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both American Funds 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 American Funds and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds New and Segall Bryant Hamill, you can compare the effects of market volatilities on American Funds 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 American Funds with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Segall Bryant.
Diversification Opportunities for American Funds and Segall Bryant
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and Segall is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding American Funds New 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 American Funds 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 American Funds New 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 American Funds i.e., American Funds and Segall Bryant go up and down completely randomly.
Pair Corralation between American Funds and Segall Bryant
Assuming the 90 days horizon American Funds New is expected to generate 0.85 times more return on investment than Segall Bryant. However, American Funds New is 1.18 times less risky than Segall Bryant. It trades about 0.02 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.01 per unit of risk. If you would invest 7,966 in American Funds New on September 1, 2024 and sell it today you would earn a total of 114.00 from holding American Funds New or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
American Funds New vs. Segall Bryant Hamill
Performance |
| Timeline |
| American Funds New |
| Segall Bryant Hamill |
American Funds and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Segall Bryant
The main advantage of trading using opposite American Funds and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds 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.| American Funds vs. Morgan Stanley Global | American Funds vs. Artisan Global Unconstrained | American Funds vs. Kinetics Global Fund | American Funds vs. Barings Global Floating |
| Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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