Correlation Between Falcon Focus and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Falcon Focus 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 Falcon Focus and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Focus Scv and Segall Bryant Hamll, you can compare the effects of market volatilities on Falcon Focus 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 Falcon Focus with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Focus and Segall Bryant.
Diversification Opportunities for Falcon Focus and Segall Bryant
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Falcon and Segall is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Focus Scv and Segall Bryant Hamll in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segall Bryant Hamll and Falcon Focus 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 Falcon Focus Scv 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 Hamll has no effect on the direction of Falcon Focus i.e., Falcon Focus and Segall Bryant go up and down completely randomly.
Pair Corralation between Falcon Focus and Segall Bryant
Assuming the 90 days horizon Falcon Focus Scv is expected to generate 0.91 times more return on investment than Segall Bryant. However, Falcon Focus Scv is 1.09 times less risky than Segall Bryant. It trades about 0.11 of its potential returns per unit of risk. Segall Bryant Hamll is currently generating about 0.06 per unit of risk. If you would invest 1,087 in Falcon Focus Scv on September 6, 2024 and sell it today you would earn a total of 228.00 from holding Falcon Focus Scv or generate 20.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.19% |
Values | Daily Returns |
Falcon Focus Scv vs. Segall Bryant Hamll
Performance |
Timeline |
Falcon Focus Scv |
Segall Bryant Hamll |
Falcon Focus and Segall Bryant Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Falcon Focus and Segall Bryant
The main advantage of trading using opposite Falcon Focus and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Focus 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.Falcon Focus vs. Virtus Convertible | Falcon Focus vs. Calamos Dynamic Convertible | Falcon Focus vs. Gabelli Convertible And | Falcon Focus vs. Absolute Convertible Arbitrage |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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