Correlation Between Segall Bryant and Congress Mid
Can any of the company-specific risk be diversified away by investing in both Segall Bryant and Congress Mid 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 Congress Mid 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 Congress Mid Cap, you can compare the effects of market volatilities on Segall Bryant and Congress Mid 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 Congress Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Segall Bryant and Congress Mid.
Diversification Opportunities for Segall Bryant and Congress Mid
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Segall and Congress is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Congress Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Congress Mid 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 Congress Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Congress Mid Cap has no effect on the direction of Segall Bryant i.e., Segall Bryant and Congress Mid go up and down completely randomly.
Pair Corralation between Segall Bryant and Congress Mid
Assuming the 90 days horizon Segall Bryant Hamill is expected to generate 0.83 times more return on investment than Congress Mid. However, Segall Bryant Hamill is 1.21 times less risky than Congress Mid. It trades about 0.04 of its potential returns per unit of risk. Congress Mid Cap is currently generating about 0.02 per unit of risk. If you would invest 2,009 in Segall Bryant Hamill on August 24, 2024 and sell it today you would earn a total of 361.00 from holding Segall Bryant Hamill or generate 17.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Segall Bryant Hamill vs. Congress Mid Cap
Performance |
| Timeline |
| Segall Bryant Hamill |
| Congress Mid Cap |
Segall Bryant and Congress Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Segall Bryant and Congress Mid
The main advantage of trading using opposite Segall Bryant and Congress Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Segall Bryant position performs unexpectedly, Congress Mid 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 Congress Mid will offset losses from the drop in Congress Mid's long position.| Segall Bryant vs. Goehring Rozencwajg Resources | Segall Bryant vs. Gmo Resources | Segall Bryant vs. Fidelity Advisor Energy | Segall Bryant vs. Short Oil Gas |
| Congress Mid vs. Polen Growth Fund | Congress Mid vs. Segall Bryant Hamill | Congress Mid vs. Diamond Hill All | Congress Mid vs. Wells Fargo Index |
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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