Correlation Between Segall Bryant and Allianzgi Convertible
Can any of the company-specific risk be diversified away by investing in both Segall Bryant and Allianzgi Convertible 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 Allianzgi Convertible 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 Allianzgi Convertible Income, you can compare the effects of market volatilities on Segall Bryant and Allianzgi Convertible 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 Allianzgi Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Segall Bryant and Allianzgi Convertible.
Diversification Opportunities for Segall Bryant and Allianzgi Convertible
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Segall and Allianzgi is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Allianzgi Convertible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Convertible 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 Allianzgi Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Convertible has no effect on the direction of Segall Bryant i.e., Segall Bryant and Allianzgi Convertible go up and down completely randomly.
Pair Corralation between Segall Bryant and Allianzgi Convertible
Assuming the 90 days horizon Segall Bryant Hamill is expected to generate 1.74 times more return on investment than Allianzgi Convertible. However, Segall Bryant is 1.74 times more volatile than Allianzgi Convertible Income. It trades about 0.06 of its potential returns per unit of risk. Allianzgi Convertible Income is currently generating about 0.09 per unit of risk. If you would invest 1,306 in Segall Bryant Hamill on November 3, 2024 and sell it today you would earn a total of 219.00 from holding Segall Bryant Hamill or generate 16.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Segall Bryant Hamill vs. Allianzgi Convertible Income
Performance |
| Timeline |
| Segall Bryant Hamill |
| Allianzgi Convertible |
Segall Bryant and Allianzgi Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Segall Bryant and Allianzgi Convertible
The main advantage of trading using opposite Segall Bryant and Allianzgi Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Segall Bryant position performs unexpectedly, Allianzgi Convertible 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 Allianzgi Convertible will offset losses from the drop in Allianzgi Convertible's long position.| Segall Bryant vs. Doubleline Total Return | Segall Bryant vs. Versatile Bond Portfolio | Segall Bryant vs. Goldman Sachs Short | Segall Bryant vs. Dreyfusstandish Global Fixed |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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