Correlation Between Vanguard Explorer and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Vanguard Explorer 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 Vanguard Explorer and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Explorer Fund and Segall Bryant Hamill, you can compare the effects of market volatilities on Vanguard Explorer 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 Vanguard Explorer with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Explorer and Segall Bryant.
Diversification Opportunities for Vanguard Explorer and Segall Bryant
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Vanguard and Segall is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Explorer 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 Vanguard Explorer 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 Vanguard Explorer 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 Vanguard Explorer i.e., Vanguard Explorer and Segall Bryant go up and down completely randomly.
Pair Corralation between Vanguard Explorer and Segall Bryant
Assuming the 90 days horizon Vanguard Explorer Fund is expected to generate 1.04 times more return on investment than Segall Bryant. However, Vanguard Explorer is 1.04 times more volatile than Segall Bryant Hamill. It trades about 0.06 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.06 per unit of risk. If you would invest 9,890 in Vanguard Explorer Fund on August 30, 2024 and sell it today you would earn a total of 3,270 from holding Vanguard Explorer Fund or generate 33.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Explorer Fund vs. Segall Bryant Hamill
Performance |
| Timeline |
| Vanguard Explorer |
| Segall Bryant Hamill |
Vanguard Explorer and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Explorer and Segall Bryant
The main advantage of trading using opposite Vanguard Explorer and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Explorer 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.| Vanguard Explorer vs. Vanguard International Growth | Vanguard Explorer vs. Vanguard Windsor Ii | Vanguard Explorer vs. Vanguard Primecap Fund | Vanguard Explorer vs. Vanguard Growth Fund |
| Segall Bryant vs. Putnam Equity Income | Segall Bryant vs. Putnam Growth Opportunities | Segall Bryant vs. HUMANA INC | Segall Bryant vs. Aquagold International |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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