Correlation Between Voya High and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Voya High 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 Voya High and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya High Yield and Segall Bryant Hamill, you can compare the effects of market volatilities on Voya High 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 Voya High with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Segall Bryant.
Diversification Opportunities for Voya High and Segall Bryant
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Voya and Segall is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield 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 Voya High 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 Voya High Yield 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 Voya High i.e., Voya High and Segall Bryant go up and down completely randomly.
Pair Corralation between Voya High and Segall Bryant
Assuming the 90 days horizon Voya High is expected to generate 2.75 times less return on investment than Segall Bryant. But when comparing it to its historical volatility, Voya High Yield is 5.18 times less risky than Segall Bryant. It trades about 0.28 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 960.00 in Segall Bryant Hamill on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Segall Bryant Hamill or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya High Yield vs. Segall Bryant Hamill
Performance |
| Timeline |
| Voya High Yield |
| Segall Bryant Hamill |
Voya High and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Segall Bryant
The main advantage of trading using opposite Voya High and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High 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.| Voya High vs. Bbh Intermediate Municipal | Voya High vs. Pace Municipal Fixed | Voya High vs. Baird Strategic Municipal | Voya High vs. Nuveen Minnesota Municipal |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |