Correlation Between Firsthand Technology and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Firsthand Technology and Segall Bryant 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 Firsthand Technology and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Technology Opportunities and Segall Bryant Hamill, you can compare the effects of market volatilities on Firsthand Technology and Segall Bryant 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 Firsthand Technology with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Technology and Segall Bryant.
Diversification Opportunities for Firsthand Technology and Segall Bryant
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Firsthand and Segall is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Technology Opportuni and Segall Bryant Hamill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segall Bryant Hamill and Firsthand Technology 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 Firsthand Technology Opportunities are associated (or correlated) with Segall Bryant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Segall Bryant Hamill has no effect on the direction of Firsthand Technology i.e., Firsthand Technology and Segall Bryant go up and down completely randomly.
Pair Corralation between Firsthand Technology and Segall Bryant
Assuming the 90 days horizon Firsthand Technology is expected to generate 3.37 times less return on investment than Segall Bryant. In addition to that, Firsthand Technology is 1.95 times more volatile than Segall Bryant Hamill. It trades about 0.03 of its total potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.21 per unit of volatility. If you would invest 1,491 in Segall Bryant Hamill on October 25, 2024 and sell it today you would earn a total of 51.00 from holding Segall Bryant Hamill or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Technology Opportuni vs. Segall Bryant Hamill
Performance |
| Timeline |
| Firsthand Technology |
| Segall Bryant Hamill |
Firsthand Technology and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Technology and Segall Bryant
The main advantage of trading using opposite Firsthand Technology and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Technology position performs unexpectedly, Segall Bryant 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 Segall Bryant will offset losses from the drop in Segall Bryant's long position.| Firsthand Technology vs. Berkshire Focus | Firsthand Technology vs. Red Oak Technology | Firsthand Technology vs. Jacob Internet Fund | Firsthand Technology vs. Kinetics Internet Fund |
| Segall Bryant vs. Columbia Real Estate | Segall Bryant vs. Tiaa Cref Real Estate | Segall Bryant vs. Texton Property | Segall Bryant vs. Baron Real Estate |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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