Correlation Between Scharf Global and Segall Bryant

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Can any of the company-specific risk be diversified away by investing in both Scharf Global 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 Scharf Global and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scharf Global Opportunity and Segall Bryant Hamll, you can compare the effects of market volatilities on Scharf Global 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 Scharf Global with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and Segall Bryant.

Diversification Opportunities for Scharf Global and Segall Bryant

-0.33
  Correlation Coefficient

Very good diversification

The 3 months correlation between Scharf and Segall is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity 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 Scharf Global 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 Scharf Global Opportunity 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 Scharf Global i.e., Scharf Global and Segall Bryant go up and down completely randomly.

Pair Corralation between Scharf Global and Segall Bryant

Assuming the 90 days horizon Scharf Global is expected to generate 1.09 times less return on investment than Segall Bryant. But when comparing it to its historical volatility, Scharf Global Opportunity is 1.17 times less risky than Segall Bryant. It trades about 0.07 of its potential returns per unit of risk. Segall Bryant Hamll is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,002  in Segall Bryant Hamll on September 6, 2024 and sell it today you would earn a total of  117.00  from holding Segall Bryant Hamll or generate 11.68% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy51.68%
ValuesDaily Returns

Scharf Global Opportunity  vs.  Segall Bryant Hamll

 Performance 
       Timeline  
Scharf Global Opportunity 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Scharf Global Opportunity are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Scharf Global 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

 
Weak
 
Strong
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.

Scharf Global and Segall Bryant Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Scharf Global and Segall Bryant

The main advantage of trading using opposite Scharf Global and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Global 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 Scharf Global Opportunity 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 Global Correlations module to find global opportunities by holding instruments from different markets.

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