Correlation Between Titan Company and Segall Bryant

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

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

Diversification Opportunities for Titan Company and Segall Bryant

-0.68

Correlation Coefficient

Titan Company  Segall Bryant

Excellent diversification

The 3 months correlation between Titan and Segall is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Titan Company Limited 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 Titan Company 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 Titan Company Limited 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 Titan Company i.e., Titan Company and Segall Bryant go up and down completely randomly.

Pair Corralation between Titan Company and Segall Bryant

Assuming the 90 days trading horizon Titan Company Limited is expected to under-perform the Segall Bryant. In addition to that, Titan Company is 1.81 times more volatile than Segall Bryant Hamll. It trades about -0.05 of its total potential returns per unit of risk. Segall Bryant Hamll is currently generating about 0.23 per unit of volatility. If you would invest  1,020  in Segall Bryant Hamll on December 30, 2024 and sell it today you would earn a total of  128.00  from holding Segall Bryant Hamll or generate 12.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Titan Company Limited  vs.  Segall Bryant Hamll

Titan Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Titan Company Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Titan Company is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Segall Bryant Hamll

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Segall Bryant Hamll are ranked lower than 17 (%) 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 April 2025.

Pair Trading with Titan Company and Segall Bryant

The main advantage of trading using opposite Titan Company and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan Company 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 Titan Company Limited and Segall Bryant Hamll 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..