Correlation Between Segall Bryant and Westcore Global
Can any of the company-specific risk be diversified away by investing in both Segall Bryant and Westcore Global 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 Global 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 Global Large Cap, you can compare the effects of market volatilities on Segall Bryant and Westcore Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Segall Bryant and Westcore Global.
Diversification Opportunities for Segall Bryant and Westcore Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Segall and Westcore is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Westcore Global Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westcore Global Large 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westcore Global Large has no effect on the direction of Segall Bryant i.e., Segall Bryant and Westcore Global go up and down completely randomly.
Pair Corralation between Segall Bryant and Westcore Global
Assuming the 90 days horizon Segall Bryant is expected to generate 1.25 times less return on investment than Westcore Global. In addition to that, Segall Bryant is 1.35 times more volatile than Westcore Global Large Cap. It trades about 0.05 of its total potential returns per unit of risk. Westcore Global Large Cap is currently generating about 0.08 per unit of volatility. If you would invest 913.00 in Westcore Global Large Cap on August 26, 2024 and sell it today you would earn a total of 316.00 from holding Westcore Global Large Cap or generate 34.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Segall Bryant Hamill vs. Westcore Global Large Cap
Performance |
| Timeline |
| Segall Bryant Hamill |
| Westcore Global Large |
Segall Bryant and Westcore Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Segall Bryant and Westcore Global
The main advantage of trading using opposite Segall Bryant and Westcore Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Segall Bryant position performs unexpectedly, Westcore Global 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 Global will offset losses from the drop in Westcore Global's long position.| Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill |
| Westcore Global vs. Westcore Flexible Income | Westcore Global vs. Westcore Plus Bond | Westcore Global vs. Teton Westwood Equity | Westcore Global vs. Westcore Orado Tax Exempt |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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