Correlation Between Unity Software and Segall Bryant

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

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

Diversification Opportunities for Unity Software and Segall Bryant

0.11

Correlation Coefficient

Unity Software  Segall Bryant

Average diversification

The 3 months correlation between Unity and Segall is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Unity Software 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 Unity Software 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 Unity Software 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 Unity Software i.e., Unity Software and Segall Bryant go up and down completely randomly.

Pair Corralation between Unity Software and Segall Bryant

Taking into account the 90-day investment horizon Unity Software is expected to generate 5.95 times more return on investment than Segall Bryant. However, Unity Software is 5.95 times more volatile than Segall Bryant Hamill. It trades about 0.02 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.07 per unit of risk. If you would invest  2,280  in Unity Software on December 24, 2024 and sell it today you would lose (7.00) from holding Unity Software or give up 0.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Unity Software  vs.  Segall Bryant Hamill

Unity Software

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Unity Software are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Unity Software may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Segall Bryant Hamill

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Segall Bryant Hamill are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental 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 Unity Software and Segall Bryant

The main advantage of trading using opposite Unity Software and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unity Software 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 Unity Software 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.