Correlation Between Segall Bryant and Barings Active
Can any of the company-specific risk be diversified away by investing in both Segall Bryant and Barings Active 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 Barings Active 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 Barings Active Short, you can compare the effects of market volatilities on Segall Bryant and Barings Active 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 Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Segall Bryant and Barings Active.
Diversification Opportunities for Segall Bryant and Barings Active
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Segall and Barings is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Barings Active Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Active Short 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 Barings Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Active Short has no effect on the direction of Segall Bryant i.e., Segall Bryant and Barings Active go up and down completely randomly.
Pair Corralation between Segall Bryant and Barings Active
Assuming the 90 days horizon Segall Bryant Hamill is expected to generate 5.86 times more return on investment than Barings Active. However, Segall Bryant is 5.86 times more volatile than Barings Active Short. It trades about 0.06 of its potential returns per unit of risk. Barings Active Short is currently generating about 0.21 per unit of risk. If you would invest 1,003 in Segall Bryant Hamill on September 12, 2024 and sell it today you would earn a total of 166.00 from holding Segall Bryant Hamill or generate 16.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Segall Bryant Hamill vs. Barings Active Short
Performance |
| Timeline |
| Segall Bryant Hamill |
| Barings Active Short |
Segall Bryant and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Segall Bryant and Barings Active
The main advantage of trading using opposite Segall Bryant and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Segall Bryant position performs unexpectedly, Barings Active 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 Barings Active will offset losses from the drop in Barings Active's long position.| Segall Bryant vs. Barings Active Short | Segall Bryant vs. Franklin Federal Limited Term | Segall Bryant vs. Easterly Snow Longshort | Segall Bryant vs. Alpine Ultra Short |
| Barings Active vs. SCOR PK | Barings Active vs. Morningstar Unconstrained Allocation | Barings Active vs. Via Renewables | Barings Active vs. Bondbloxx ETF Trust |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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