Correlation Between Walmart and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Walmart 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 Walmart and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Segall Bryant Hamill, you can compare the effects of market volatilities on Walmart 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 Walmart with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Segall Bryant.
Diversification Opportunities for Walmart and Segall Bryant
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walmart and Segall is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Walmart 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 Walmart 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 Walmart 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 Walmart i.e., Walmart and Segall Bryant go up and down completely randomly.
Pair Corralation between Walmart and Segall Bryant
Considering the 90-day investment horizon Walmart is expected to generate 1.31 times more return on investment than Segall Bryant. However, Walmart is 1.31 times more volatile than Segall Bryant Hamill. It trades about 0.18 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.05 per unit of risk. If you would invest 6,549 in Walmart on November 28, 2024 and sell it today you would earn a total of 3,220 from holding Walmart or generate 49.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Segall Bryant Hamill
Performance |
| Timeline |
| Walmart |
| Segall Bryant Hamill |
Walmart and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Segall Bryant
The main advantage of trading using opposite Walmart and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart 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.| Walmart vs. Target | Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation |
| Segall Bryant vs. Davis Select International | Segall Bryant vs. Principal Value ETF | Segall Bryant vs. WisdomTree Emerging Markets | Segall Bryant vs. Ballast SmallMid Cap |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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