Correlation Between Oppenheimer Developing and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Developing 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 Oppenheimer Developing and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Developing Markets and Segall Bryant Hamill, you can compare the effects of market volatilities on Oppenheimer Developing 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 Oppenheimer Developing with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Developing and Segall Bryant.
Diversification Opportunities for Oppenheimer Developing and Segall Bryant
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppenheimer and Segall is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Developing Markets 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 Oppenheimer Developing 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 Oppenheimer Developing Markets 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 Oppenheimer Developing i.e., Oppenheimer Developing and Segall Bryant go up and down completely randomly.
Pair Corralation between Oppenheimer Developing and Segall Bryant
Assuming the 90 days horizon Oppenheimer Developing Markets is expected to under-perform the Segall Bryant. But the mutual fund apears to be less risky and, when comparing its historical volatility, Oppenheimer Developing Markets is 1.05 times less risky than Segall Bryant. The mutual fund trades about -0.23 of its potential returns per unit of risk. The Segall Bryant Hamill is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 974.00 in Segall Bryant Hamill on September 1, 2024 and sell it today you would lose (17.00) from holding Segall Bryant Hamill or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Oppenheimer Developing Markets vs. Segall Bryant Hamill
Performance |
| Timeline |
| Oppenheimer Developing |
| Segall Bryant Hamill |
Oppenheimer Developing and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Developing and Segall Bryant
The main advantage of trading using opposite Oppenheimer Developing and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Developing 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.The idea behind Oppenheimer Developing Markets and Segall Bryant Hamill pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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