Correlation Between Segall Bryant and Westcore Flexible
Can any of the company-specific risk be diversified away by investing in both Segall Bryant and Westcore Flexible 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 Flexible 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 Flexible Income, you can compare the effects of market volatilities on Segall Bryant and Westcore Flexible 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 Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Segall Bryant and Westcore Flexible.
Diversification Opportunities for Segall Bryant and Westcore Flexible
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Segall and Westcore is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Westcore Flexible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westcore Flexible 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 Westcore Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westcore Flexible Income has no effect on the direction of Segall Bryant i.e., Segall Bryant and Westcore Flexible go up and down completely randomly.
Pair Corralation between Segall Bryant and Westcore Flexible
Assuming the 90 days horizon Segall Bryant is expected to generate 1.56 times less return on investment than Westcore Flexible. But when comparing it to its historical volatility, Segall Bryant Hamill is 1.64 times less risky than Westcore Flexible. It trades about 0.23 of its potential returns per unit of risk. Westcore Flexible Income is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 840.00 in Westcore Flexible Income on September 1, 2024 and sell it today you would earn a total of 36.00 from holding Westcore Flexible Income or generate 4.29% 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. Westcore Flexible Income
Performance |
| Timeline |
| Segall Bryant Hamill |
| Westcore Flexible Income |
Segall Bryant and Westcore Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Segall Bryant and Westcore Flexible
The main advantage of trading using opposite Segall Bryant and Westcore Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Segall Bryant position performs unexpectedly, Westcore Flexible 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 Flexible will offset losses from the drop in Westcore Flexible'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 Flexible vs. Westcore Plus Bond | Westcore Flexible vs. Buffalo High Yield | Westcore Flexible vs. Northern High Yield | Westcore Flexible vs. Federated High Yield |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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