Correlation Between Westcore Small-cap and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Westcore Small-cap 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 Small-cap 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 Small Cap Growth and Segall Bryant Hamill, you can compare the effects of market volatilities on Westcore Small-cap 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 Small-cap with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westcore Small-cap and Segall Bryant.
Diversification Opportunities for Westcore Small-cap and Segall Bryant
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Westcore and Segall is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Westcore Small Cap Growth 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 Small-cap 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 Small Cap Growth 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 Small-cap i.e., Westcore Small-cap and Segall Bryant go up and down completely randomly.
Pair Corralation between Westcore Small-cap and Segall Bryant
Assuming the 90 days horizon Westcore Small Cap Growth is expected to generate 1.37 times more return on investment than Segall Bryant. However, Westcore Small-cap is 1.37 times more volatile than Segall Bryant Hamill. It trades about 0.08 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 1,733 in Westcore Small Cap Growth on August 29, 2024 and sell it today you would earn a total of 563.00 from holding Westcore Small Cap Growth or generate 32.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westcore Small Cap Growth vs. Segall Bryant Hamill
Performance |
| Timeline |
| Westcore Small Cap |
| Segall Bryant Hamill |
Westcore Small-cap and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westcore Small-cap and Segall Bryant
The main advantage of trading using opposite Westcore Small-cap and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westcore Small-cap 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 Small-cap vs. Driehaus Small Cap | Westcore Small-cap vs. Prudential Jennison International | Westcore Small-cap vs. Ab Small Cap | Westcore Small-cap vs. Brown Advisory Sustainable |
| Segall Bryant vs. Pioneer Diversified High | Segall Bryant vs. Western Asset Diversified | Segall Bryant vs. Delaware Limited Term Diversified | Segall Bryant vs. Blackrock Conservative Prprdptfinstttnl |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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