Correlation Between Oakmark International and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Oakmark International 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 Oakmark International and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark International Small and Segall Bryant Hamill, you can compare the effects of market volatilities on Oakmark International 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 Oakmark International with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark International and Segall Bryant.
Diversification Opportunities for Oakmark International and Segall Bryant
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oakmark and Segall is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark International 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 Oakmark International 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 Oakmark International 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 Oakmark International i.e., Oakmark International and Segall Bryant go up and down completely randomly.
Pair Corralation between Oakmark International and Segall Bryant
Assuming the 90 days horizon Oakmark International Small is expected to under-perform the Segall Bryant. But the mutual fund apears to be less risky and, when comparing its historical volatility, Oakmark International Small is 1.04 times less risky than Segall Bryant. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Segall Bryant Hamill is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,153 in Segall Bryant Hamill on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Segall Bryant Hamill or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark International Small vs. Segall Bryant Hamill
Performance |
| Timeline |
| Oakmark International |
| Segall Bryant Hamill |
Oakmark International and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark International and Segall Bryant
The main advantage of trading using opposite Oakmark International and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark International 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.| Oakmark International vs. Oakmark International Fund | Oakmark International vs. Oakmark Global Fund | Oakmark International vs. Oakmark Select Fund | Oakmark International vs. Oakmark Global Select |
| Segall Bryant vs. Pace Smallmedium Value | Segall Bryant vs. Heartland Value Plus | Segall Bryant vs. American Century Etf | Segall Bryant vs. Applied Finance Explorer |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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