Correlation Between Segall Bryant and Putnam Equity
Can any of the company-specific risk be diversified away by investing in both Segall Bryant and Putnam Equity 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 Putnam Equity 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 Putnam Equity Income, you can compare the effects of market volatilities on Segall Bryant and Putnam Equity 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 Putnam Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Segall Bryant and Putnam Equity.
Diversification Opportunities for Segall Bryant and Putnam Equity
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Segall and Putnam is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Putnam Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Equity Income 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 Putnam Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Equity Income has no effect on the direction of Segall Bryant i.e., Segall Bryant and Putnam Equity go up and down completely randomly.
Pair Corralation between Segall Bryant and Putnam Equity
Assuming the 90 days horizon Segall Bryant Hamill is expected to generate 1.85 times more return on investment than Putnam Equity. However, Segall Bryant is 1.85 times more volatile than Putnam Equity Income. It trades about 0.15 of its potential returns per unit of risk. Putnam Equity Income is currently generating about 0.15 per unit of risk. If you would invest 1,321 in Segall Bryant Hamill on August 30, 2024 and sell it today you would earn a total of 102.00 from holding Segall Bryant Hamill or generate 7.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Segall Bryant Hamill vs. Putnam Equity Income
Performance |
| Timeline |
| Segall Bryant Hamill |
| Putnam Equity Income |
Segall Bryant and Putnam Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Segall Bryant and Putnam Equity
The main advantage of trading using opposite Segall Bryant and Putnam Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Segall Bryant position performs unexpectedly, Putnam Equity 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 Putnam Equity will offset losses from the drop in Putnam Equity's long position.| Segall Bryant vs. Putnam Equity Income | Segall Bryant vs. Putnam Growth Opportunities | Segall Bryant vs. HUMANA INC | Segall Bryant vs. Aquagold International |
| Putnam Equity vs. Dodge Cox Stock | Putnam Equity vs. American Mutual Fund | Putnam Equity vs. American Funds American | Putnam Equity vs. American Funds American |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |