Correlation Between Westcore Municipal and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Westcore Municipal 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 Westcore Municipal and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westcore Municipal Opportunities and Segall Bryant Hamill, you can compare the effects of market volatilities on Westcore Municipal 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 Westcore Municipal with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westcore Municipal and Segall Bryant.
Diversification Opportunities for Westcore Municipal and Segall Bryant
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Westcore and Segall is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Westcore Municipal Opportuniti 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 Westcore Municipal 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 Westcore Municipal 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 Westcore Municipal i.e., Westcore Municipal and Segall Bryant go up and down completely randomly.
Pair Corralation between Westcore Municipal and Segall Bryant
Assuming the 90 days horizon Westcore Municipal is expected to generate 3.81 times less return on investment than Segall Bryant. But when comparing it to its historical volatility, Westcore Municipal Opportunities is 5.07 times less risky than Segall Bryant. It trades about 0.1 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 703.00 in Segall Bryant Hamill on August 30, 2024 and sell it today you would earn a total of 257.00 from holding Segall Bryant Hamill or generate 36.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westcore Municipal Opportuniti vs. Segall Bryant Hamill
Performance |
| Timeline |
| Westcore Municipal |
| Segall Bryant Hamill |
Westcore Municipal and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westcore Municipal and Segall Bryant
The main advantage of trading using opposite Westcore Municipal and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westcore Municipal 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.| Westcore Municipal vs. Westcore Orado Tax Exempt | Westcore Municipal vs. Westcore Plus Bond | Westcore Municipal vs. Westcore Global Large Cap | Westcore Municipal vs. Westcore Flexible Income |
| Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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