Correlation Between Segall Bryant and Investec Emerging
Can any of the company-specific risk be diversified away by investing in both Segall Bryant and Investec Emerging 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 Investec Emerging 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 Investec Emerging Markets, you can compare the effects of market volatilities on Segall Bryant and Investec Emerging 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 Investec Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Segall Bryant and Investec Emerging.
Diversification Opportunities for Segall Bryant and Investec Emerging
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Segall and Investec is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Investec Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investec Emerging Markets 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 Investec Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investec Emerging Markets has no effect on the direction of Segall Bryant i.e., Segall Bryant and Investec Emerging go up and down completely randomly.
Pair Corralation between Segall Bryant and Investec Emerging
Assuming the 90 days horizon Segall Bryant Hamill is expected to under-perform the Investec Emerging. In addition to that, Segall Bryant is 2.44 times more volatile than Investec Emerging Markets. It trades about -0.29 of its total potential returns per unit of risk. Investec Emerging Markets is currently generating about -0.26 per unit of volatility. If you would invest 1,109 in Investec Emerging Markets on October 9, 2024 and sell it today you would lose (35.00) from holding Investec Emerging Markets or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Segall Bryant Hamill vs. Investec Emerging Markets
Performance |
| Timeline |
| Segall Bryant Hamill |
| Investec Emerging Markets |
Segall Bryant and Investec Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Segall Bryant and Investec Emerging
The main advantage of trading using opposite Segall Bryant and Investec Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Segall Bryant position performs unexpectedly, Investec Emerging 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 Investec Emerging will offset losses from the drop in Investec Emerging's long position.| Segall Bryant vs. Ab High Income | Segall Bryant vs. Lord Abbett Short | Segall Bryant vs. Transamerica High Yield | Segall Bryant vs. Siit High Yield |
| Investec Emerging vs. Large Cap Growth Profund | Investec Emerging vs. Tax Managed Large Cap | Investec Emerging vs. Transamerica Large Cap | Investec Emerging vs. Guidemark Large Cap |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |