Correlation Between Goldman Sachs and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs 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 Goldman Sachs and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs High and Segall Bryant Hamill, you can compare the effects of market volatilities on Goldman Sachs 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 Goldman Sachs with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Segall Bryant.
Diversification Opportunities for Goldman Sachs and Segall Bryant
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between GOLDMAN and Segall is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs High 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 Goldman Sachs 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 Goldman Sachs High 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 Goldman Sachs i.e., Goldman Sachs and Segall Bryant go up and down completely randomly.
Pair Corralation between Goldman Sachs and Segall Bryant
Assuming the 90 days horizon Goldman Sachs is expected to generate 2.68 times less return on investment than Segall Bryant. But when comparing it to its historical volatility, Goldman Sachs High is 2.38 times less risky than Segall Bryant. It trades about 0.08 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,867 in Segall Bryant Hamill on August 29, 2024 and sell it today you would earn a total of 535.00 from holding Segall Bryant Hamill or generate 28.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs High vs. Segall Bryant Hamill
Performance |
| Timeline |
| Goldman Sachs High |
| Segall Bryant Hamill |
Goldman Sachs and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Segall Bryant
The main advantage of trading using opposite Goldman Sachs and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs 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.| Goldman Sachs vs. Alger Health Sciences | Goldman Sachs vs. Alphacentric Lifesci Healthcare | Goldman Sachs vs. Fidelity Advisor Health | Goldman Sachs vs. The Gabelli Healthcare |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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