Correlation Between Templeton Growth and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Templeton Growth 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 Templeton Growth and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Growth Fund and Segall Bryant Hamill, you can compare the effects of market volatilities on Templeton Growth 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 Templeton Growth with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Growth and Segall Bryant.
Diversification Opportunities for Templeton Growth and Segall Bryant
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Templeton and Segall is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Growth Fund 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 Templeton Growth 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 Templeton Growth Fund 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 Templeton Growth i.e., Templeton Growth and Segall Bryant go up and down completely randomly.
Pair Corralation between Templeton Growth and Segall Bryant
Assuming the 90 days horizon Templeton Growth Fund is expected to generate 0.74 times more return on investment than Segall Bryant. However, Templeton Growth Fund is 1.35 times less risky than Segall Bryant. It trades about 0.23 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about -0.14 per unit of risk. If you would invest 2,731 in Templeton Growth Fund on September 4, 2024 and sell it today you would earn a total of 81.00 from holding Templeton Growth Fund or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Templeton Growth Fund vs. Segall Bryant Hamill
Performance |
| Timeline |
| Templeton Growth |
| Segall Bryant Hamill |
Templeton Growth and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Growth and Segall Bryant
The main advantage of trading using opposite Templeton Growth and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Growth 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.| Templeton Growth vs. Prudential Financial Services | Templeton Growth vs. Financials Ultrasector Profund | Templeton Growth vs. Davis Financial Fund | Templeton Growth vs. Fidelity Advisor Financial |
| Segall Bryant vs. Blackrock High Yield | Segall Bryant vs. Msift High Yield | Segall Bryant vs. Gmo High Yield | Segall Bryant vs. Siit 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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