Correlation Between Dreyfus Strategic and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Dreyfus Strategic 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 Dreyfus Strategic and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Strategic Municipal and Segall Bryant Hamill, you can compare the effects of market volatilities on Dreyfus Strategic 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 Dreyfus Strategic with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Strategic and Segall Bryant.
Diversification Opportunities for Dreyfus Strategic and Segall Bryant
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dreyfus and Segall is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Strategic Municipal 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 Dreyfus Strategic 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 Dreyfus Strategic Municipal 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 Dreyfus Strategic i.e., Dreyfus Strategic and Segall Bryant go up and down completely randomly.
Pair Corralation between Dreyfus Strategic and Segall Bryant
Assuming the 90 days horizon Dreyfus Strategic is expected to generate 3.4 times less return on investment than Segall Bryant. But when comparing it to its historical volatility, Dreyfus Strategic Municipal is 2.9 times less risky than Segall Bryant. It trades about 0.08 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,237 in Segall Bryant Hamill on September 1, 2024 and sell it today you would earn a total of 189.00 from holding Segall Bryant Hamill or generate 15.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Dreyfus Strategic Municipal vs. Segall Bryant Hamill
Performance |
| Timeline |
| Dreyfus Strategic |
| Segall Bryant Hamill |
Dreyfus Strategic and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Strategic and Segall Bryant
The main advantage of trading using opposite Dreyfus Strategic and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Strategic 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.| Dreyfus Strategic vs. Vanguard Total Stock | Dreyfus Strategic vs. Vanguard 500 Index | Dreyfus Strategic vs. Vanguard Total Stock | Dreyfus Strategic vs. Vanguard Total Stock |
| Segall Bryant vs. World Energy Fund | Segall Bryant vs. Ivy Energy Fund | Segall Bryant vs. Oil Gas Ultrasector | Segall Bryant vs. Jennison Natural Resources |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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