Correlation Between Vanguard 500 and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Vanguard 500 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 500 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 500 Index and Segall Bryant Hamll, you can compare the effects of market volatilities on Vanguard 500 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 500 with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard 500 and Segall Bryant.
Diversification Opportunities for Vanguard 500 and Segall Bryant
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vanguard and Segall is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard 500 Index and Segall Bryant Hamll in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segall Bryant Hamll and Vanguard 500 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 500 Index 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 Hamll has no effect on the direction of Vanguard 500 i.e., Vanguard 500 and Segall Bryant go up and down completely randomly.
Pair Corralation between Vanguard 500 and Segall Bryant
Assuming the 90 days horizon Vanguard 500 Index is expected to generate 1.07 times more return on investment than Segall Bryant. However, Vanguard 500 is 1.07 times more volatile than Segall Bryant Hamll. It trades about 0.12 of its potential returns per unit of risk. Segall Bryant Hamll is currently generating about 0.05 per unit of risk. If you would invest 18,722 in Vanguard 500 Index on August 30, 2024 and sell it today you would earn a total of 10,682 from holding Vanguard 500 Index or generate 57.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 48.89% |
| Values | Daily Returns |
Vanguard 500 Index vs. Segall Bryant Hamll
Performance |
| Timeline |
| Vanguard 500 Index |
| Segall Bryant Hamll |
Vanguard 500 and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard 500 and Segall Bryant
The main advantage of trading using opposite Vanguard 500 and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard 500 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 500 vs. Kinetics Small Cap | Vanguard 500 vs. Growth Fund Of | Vanguard 500 vs. Artisan Small Cap | Vanguard 500 vs. T Rowe Price |
| Segall Bryant vs. Vanguard Total International | Segall Bryant vs. Vanguard Total International | Segall Bryant vs. Vanguard Total International | Segall Bryant vs. Vanguard Total 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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