Correlation Between Segall Bryant and Wilshire International
Can any of the company-specific risk be diversified away by investing in both Segall Bryant and Wilshire International 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 Wilshire International 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 Wilshire International Equity, you can compare the effects of market volatilities on Segall Bryant and Wilshire International 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 Wilshire International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Segall Bryant and Wilshire International.
Diversification Opportunities for Segall Bryant and Wilshire International
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Segall and Wilshire is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Wilshire International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilshire International 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 Wilshire International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilshire International has no effect on the direction of Segall Bryant i.e., Segall Bryant and Wilshire International go up and down completely randomly.
Pair Corralation between Segall Bryant and Wilshire International
Assuming the 90 days horizon Segall Bryant is expected to generate 5.65 times less return on investment than Wilshire International. But when comparing it to its historical volatility, Segall Bryant Hamill is 9.73 times less risky than Wilshire International. It trades about 0.37 of its potential returns per unit of risk. Wilshire International Equity is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,018 in Wilshire International Equity on October 26, 2024 and sell it today you would earn a total of 30.00 from holding Wilshire International Equity or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Segall Bryant Hamill vs. Wilshire International Equity
Performance |
| Timeline |
| Segall Bryant Hamill |
| Wilshire International |
Segall Bryant and Wilshire International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Segall Bryant and Wilshire International
The main advantage of trading using opposite Segall Bryant and Wilshire International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Segall Bryant position performs unexpectedly, Wilshire International 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 Wilshire International will offset losses from the drop in Wilshire International'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 |
| Wilshire International vs. Large Pany Value | Wilshire International vs. Wilshire Large | Wilshire International vs. Small Pany Growth | Wilshire International vs. Small Pany Value |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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