Correlation Between Polen International and Segall Bryant

Can any of the company-specific risk be diversified away by investing in both Polen International 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 Polen International and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Polen International Growth and Segall Bryant Hamill, you can compare the effects of market volatilities on Polen International 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 Polen International with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polen International and Segall Bryant.

Diversification Opportunities for Polen International and Segall Bryant

0.49

Correlation Coefficient

Polen International  Segall Bryant

Very weak diversification

The 3 months correlation between Polen and Segall is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Polen International 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 Polen International 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 Polen International 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 Polen International i.e., Polen International and Segall Bryant go up and down completely randomly.

Pair Corralation between Polen International and Segall Bryant

Assuming the 90 days horizon Polen International Growth is expected to under-perform the Segall Bryant. But the mutual fund apears to be less risky and, when comparing its historical volatility, Polen International Growth is 1.19 times less risky than Segall Bryant. The mutual fund trades about -0.27 of its potential returns per unit of risk. The Segall Bryant Hamill is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest  2,039  in Segall Bryant Hamill on October 10, 2024 and sell it today you would lose (73.00) from holding Segall Bryant Hamill or give up 3.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Polen International Growth  vs.  Segall Bryant Hamill

Polen International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Polen International Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Polen International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Segall Bryant Hamill

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Segall Bryant Hamill has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Polen International and Segall Bryant

The main advantage of trading using opposite Polen International and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polen International 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 Polen International Growth 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.