Correlation Between Aam Select and Segall Bryant

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

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

Diversification Opportunities for Aam Select and Segall Bryant

0.34

Correlation Coefficient

Aam Select  Segall Bryant

Weak diversification

The 3 months correlation between Aam and Segall is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aam Select Income 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 Aam Select 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 Aam Select Income 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 Aam Select i.e., Aam Select and Segall Bryant go up and down completely randomly.

Pair Corralation between Aam Select and Segall Bryant

Assuming the 90 days horizon Aam Select is expected to generate 3.77 times less return on investment than Segall Bryant. But when comparing it to its historical volatility, Aam Select Income is 2.62 times less risky than Segall Bryant. It trades about 0.21 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  1,270  in Segall Bryant Hamill on May 28, 2025 and sell it today you would earn a total of  175.00  from holding Segall Bryant Hamill or generate 13.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Aam Select Income  vs.  Segall Bryant Hamill

Aam Select Income

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Aam Select Income are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Aam Select is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Segall Bryant Hamill

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Segall Bryant Hamill are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Segall Bryant showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aam Select and Segall Bryant

The main advantage of trading using opposite Aam Select and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam Select 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 Aam Select Income 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.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.