Correlation Between Balanced Fund and Segall Bryant

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

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

Diversification Opportunities for Balanced Fund and Segall Bryant

-0.18

Correlation Coefficient

Balanced Fund  Segall Bryant

Good diversification

The 3 months correlation between Balanced and Segall is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Investor 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 Balanced Fund 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 Balanced Fund Investor 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 Balanced Fund i.e., Balanced Fund and Segall Bryant go up and down completely randomly.

Pair Corralation between Balanced Fund and Segall Bryant

Assuming the 90 days horizon Balanced Fund Investor is expected to generate 0.51 times more return on investment than Segall Bryant. However, Balanced Fund Investor is 1.97 times less risky than Segall Bryant. It trades about 0.18 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  1,943  in Balanced Fund Investor on September 8, 2024 and sell it today you would earn a total of  101.00  from holding Balanced Fund Investor or generate 5.2% return on investment over 90 days.

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

Balanced Fund Investor  vs.  Segall Bryant Hamll

Balanced Fund Investor

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Balanced Fund Investor are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Balanced Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Segall Bryant Hamll

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Balanced Fund and Segall Bryant

The main advantage of trading using opposite Balanced Fund and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund 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 Balanced Fund Investor 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.