Correlation Between Federated Kaufmann and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Federated Kaufmann 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 Federated Kaufmann and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Kaufmann Large and Segall Bryant Hamill, you can compare the effects of market volatilities on Federated Kaufmann 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 Federated Kaufmann with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and Segall Bryant.
Diversification Opportunities for Federated Kaufmann and Segall Bryant
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and Segall is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Large 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 Federated Kaufmann 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 Federated Kaufmann Large 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 Federated Kaufmann i.e., Federated Kaufmann and Segall Bryant go up and down completely randomly.
Pair Corralation between Federated Kaufmann and Segall Bryant
Assuming the 90 days horizon Federated Kaufmann Large is expected to generate 1.4 times more return on investment than Segall Bryant. However, Federated Kaufmann is 1.4 times more volatile than Segall Bryant Hamill. It trades about 0.11 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.12 per unit of risk. If you would invest 1,719 in Federated Kaufmann Large on September 3, 2024 and sell it today you would earn a total of 280.00 from holding Federated Kaufmann Large or generate 16.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Kaufmann Large vs. Segall Bryant Hamill
Performance |
| Timeline |
| Federated Kaufmann Large |
| Segall Bryant Hamill |
Federated Kaufmann and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Kaufmann and Segall Bryant
The main advantage of trading using opposite Federated Kaufmann and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Kaufmann 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.| Federated Kaufmann vs. American Funds The | Federated Kaufmann vs. American Funds The | Federated Kaufmann vs. Growth Fund Of | Federated Kaufmann vs. Growth Fund Of |
| Segall Bryant vs. Northern Small Cap | Segall Bryant vs. The Gabelli Small | Segall Bryant vs. Lord Abbett Diversified | Segall Bryant vs. Pgim Jennison Diversified |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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