Correlation Between Segall Bryant and Putnam Growth
Can any of the company-specific risk be diversified away by investing in both Segall Bryant and Putnam Growth 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 Growth 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 Growth Opportunities, you can compare the effects of market volatilities on Segall Bryant and Putnam Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Segall Bryant and Putnam Growth.
Diversification Opportunities for Segall Bryant and Putnam Growth
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Segall and Putnam is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Putnam Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Growth Opport 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Growth Opport has no effect on the direction of Segall Bryant i.e., Segall Bryant and Putnam Growth go up and down completely randomly.
Pair Corralation between Segall Bryant and Putnam Growth
Assuming the 90 days horizon Segall Bryant Hamill is expected to generate 1.52 times more return on investment than Putnam Growth. However, Segall Bryant is 1.52 times more volatile than Putnam Growth Opportunities. It trades about 0.3 of its potential returns per unit of risk. Putnam Growth Opportunities is currently generating about 0.32 per unit of risk. If you would invest 1,312 in Segall Bryant Hamill on September 3, 2024 and sell it today you would earn a total of 114.00 from holding Segall Bryant Hamill or generate 8.69% 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. Putnam Growth Opportunities
Performance |
| Timeline |
| Segall Bryant Hamill |
| Putnam Growth Opport |
Segall Bryant and Putnam Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Segall Bryant and Putnam Growth
The main advantage of trading using opposite Segall Bryant and Putnam Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Segall Bryant position performs unexpectedly, Putnam Growth 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 Growth will offset losses from the drop in Putnam Growth's long position.| Segall Bryant vs. The Hartford Midcap | Segall Bryant vs. Mfs Emerging Markets | Segall Bryant vs. Wells Fargo Special | Segall Bryant vs. Washington Mutual Investors |
| Putnam Growth vs. Putnam Equity Income | Putnam Growth vs. Putnam Multi Cap Growth | Putnam Growth vs. Putnam Global Health | Putnam Growth vs. Putnam International Equity |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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