Correlation Between Amazon and Segall Bryant

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Amazon 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 Amazon and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and Segall Bryant Hamill, you can compare the effects of market volatilities on Amazon 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 Amazon with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Segall Bryant.

Diversification Opportunities for Amazon and Segall Bryant

0.89
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Amazon and Segall is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc 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 Amazon 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 Amazon Inc 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 Amazon i.e., Amazon and Segall Bryant go up and down completely randomly.

Pair Corralation between Amazon and Segall Bryant

Given the investment horizon of 90 days Amazon Inc is expected to generate 2.65 times more return on investment than Segall Bryant. However, Amazon is 2.65 times more volatile than Segall Bryant Hamill. It trades about 0.19 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.17 per unit of risk. If you would invest  17,789  in Amazon Inc on September 5, 2024 and sell it today you would earn a total of  4,027  from holding Amazon Inc or generate 22.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Amazon Inc  vs.  Segall Bryant Hamill

 Performance 
       Timeline  
Amazon Inc 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Amazon Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Amazon displayed solid returns over the last few months and may actually be approaching a breakup point.
Segall Bryant Hamill 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Segall Bryant Hamill are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Segall Bryant may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Amazon and Segall Bryant Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amazon and Segall Bryant

The main advantage of trading using opposite Amazon and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon 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.
The idea behind Amazon Inc and Segall Bryant Hamill pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

Other Complementary Tools

Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas