Correlation Between Segall Bryant and Westcore Small-cap
Can any of the company-specific risk be diversified away by investing in both Segall Bryant and Westcore Small-cap 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 Segall Bryant and Westcore Small-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Segall Bryant Hamill and Westcore Small Cap Growth, you can compare the effects of market volatilities on Segall Bryant and Westcore Small-cap 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 Segall Bryant with a short position of Westcore Small-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Segall Bryant and Westcore Small-cap.
Diversification Opportunities for Segall Bryant and Westcore Small-cap
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Segall and Westcore is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Westcore Small Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westcore Small Cap and Segall Bryant 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 Segall Bryant Hamill are associated (or correlated) with Westcore Small-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westcore Small Cap has no effect on the direction of Segall Bryant i.e., Segall Bryant and Westcore Small-cap go up and down completely randomly.
Pair Corralation between Segall Bryant and Westcore Small-cap
Assuming the 90 days horizon Segall Bryant is expected to generate 3.8 times less return on investment than Westcore Small-cap. But when comparing it to its historical volatility, Segall Bryant Hamill is 12.16 times less risky than Westcore Small-cap. It trades about 0.21 of its potential returns per unit of risk. Westcore Small Cap Growth is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,640 in Westcore Small Cap Growth on September 3, 2024 and sell it today you would earn a total of 657.00 from holding Westcore Small Cap Growth or generate 40.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Segall Bryant Hamill vs. Westcore Small Cap Growth
Performance |
| Timeline |
| Segall Bryant Hamill |
| Westcore Small Cap |
Segall Bryant and Westcore Small-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Segall Bryant and Westcore Small-cap
The main advantage of trading using opposite Segall Bryant and Westcore Small-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Segall Bryant position performs unexpectedly, Westcore Small-cap 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 Westcore Small-cap will offset losses from the drop in Westcore Small-cap's long position.| Segall Bryant vs. Aqr Managed Futures | Segall Bryant vs. American Funds Inflation | Segall Bryant vs. Ab Bond Inflation | Segall Bryant vs. Lord Abbett Inflation |
| Westcore Small-cap vs. Driehaus Small Cap | Westcore Small-cap vs. Prudential Jennison International | Westcore Small-cap vs. Ab Small Cap | Westcore Small-cap vs. Brown Advisory Sustainable |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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