Correlation Between Segall Bryant and Clearbridge Dividend

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

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

Diversification Opportunities for Segall Bryant and Clearbridge Dividend

0.54

Correlation Coefficient

Segall Bryant  Clearbridge Dividend

Very weak diversification

The 3 months correlation between Segall and Clearbridge is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Clearbridge Dividend Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Dividend and Segall Bryant 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 Segall Bryant Hamill are associated (or correlated) with Clearbridge Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Dividend has no effect on the direction of Segall Bryant i.e., Segall Bryant and Clearbridge Dividend go up and down completely randomly.

Pair Corralation between Segall Bryant and Clearbridge Dividend

Assuming the 90 days horizon Segall Bryant Hamill is expected to under-perform the Clearbridge Dividend. In addition to that, Segall Bryant is 1.33 times more volatile than Clearbridge Dividend Strategy. It trades about -0.11 of its total potential returns per unit of risk. Clearbridge Dividend Strategy is currently generating about 0.02 per unit of volatility. If you would invest  3,108  in Clearbridge Dividend Strategy on December 23, 2024 and sell it today you would earn a total of  22.00  from holding Clearbridge Dividend Strategy or generate 0.71% return on investment over 90 days.

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

Segall Bryant Hamill  vs.  Clearbridge Dividend Strategy

Segall Bryant Hamill

Risk-Adjusted Performance

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 latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Clearbridge Dividend

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Clearbridge Dividend Strategy are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Clearbridge Dividend is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Segall Bryant and Clearbridge Dividend

The main advantage of trading using opposite Segall Bryant and Clearbridge Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Segall Bryant position performs unexpectedly, Clearbridge Dividend 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 Clearbridge Dividend will offset losses from the drop in Clearbridge Dividend's long position.

The idea behind Segall Bryant Hamill and Clearbridge Dividend Strategy 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.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.