Correlation Between Amg Gwk and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Amg Gwk 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 Amg Gwk and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Gwk Small and Segall Bryant Hamill, you can compare the effects of market volatilities on Amg Gwk 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 Amg Gwk with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Gwk and Segall Bryant.
Diversification Opportunities for Amg Gwk and Segall Bryant
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and Segall is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Amg Gwk Small 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 Amg Gwk 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 Amg Gwk Small 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 Amg Gwk i.e., Amg Gwk and Segall Bryant go up and down completely randomly.
Pair Corralation between Amg Gwk and Segall Bryant
Assuming the 90 days horizon Amg Gwk Small is expected to under-perform the Segall Bryant. In addition to that, Amg Gwk is 1.13 times more volatile than Segall Bryant Hamill. It trades about -0.33 of its total potential returns per unit of risk. Segall Bryant Hamill is currently generating about -0.25 per unit of volatility. If you would invest 1,593 in Segall Bryant Hamill on October 9, 2024 and sell it today you would lose (93.00) from holding Segall Bryant Hamill or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Gwk Small vs. Segall Bryant Hamill
Performance |
| Timeline |
| Amg Gwk Small |
| Segall Bryant Hamill |
Amg Gwk and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Gwk and Segall Bryant
The main advantage of trading using opposite Amg Gwk and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Gwk 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.| Amg Gwk vs. Amg Gwk Small | Amg Gwk vs. Aberdeen Small Cap | Amg Gwk vs. Poplar Forest Partners | Amg Gwk vs. Calvert Small Cap |
| Segall Bryant vs. Firsthand Technology Opportunities | Segall Bryant vs. Janus Global Technology | Segall Bryant vs. Goldman Sachs Technology | Segall Bryant vs. Blackrock Science Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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