Correlation Between Lord Abbett and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Lord Abbett 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 Lord Abbett and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Short and Segall Bryant Hamill, you can compare the effects of market volatilities on Lord Abbett 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 Lord Abbett with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Segall Bryant.
Diversification Opportunities for Lord Abbett and Segall Bryant
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and Segall is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Short 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 Lord Abbett 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 Lord Abbett Short 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 Lord Abbett i.e., Lord Abbett and Segall Bryant go up and down completely randomly.
Pair Corralation between Lord Abbett and Segall Bryant
Assuming the 90 days horizon Lord Abbett is expected to generate 1.03 times less return on investment than Segall Bryant. In addition to that, Lord Abbett is 1.62 times more volatile than Segall Bryant Hamill. It trades about 0.14 of its total potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.23 per unit of volatility. If you would invest 985.00 in Segall Bryant Hamill on September 1, 2024 and sell it today you would earn a total of 27.00 from holding Segall Bryant Hamill or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Lord Abbett Short vs. Segall Bryant Hamill
Performance |
| Timeline |
| Lord Abbett Short |
| Segall Bryant Hamill |
Lord Abbett and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Segall Bryant
The main advantage of trading using opposite Lord Abbett and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett 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.| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Focused | Lord Abbett vs. Floating Rate Fund |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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