Correlation Between Us Vector and Segall Bryant

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

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

Diversification Opportunities for Us Vector and Segall Bryant

0.96

Correlation Coefficient

Us Vector  Segall Bryant

Almost no diversification

The 3 months correlation between DFVEX and Segall is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Us Vector Equity 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 Us Vector 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 Us Vector Equity 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 Us Vector i.e., Us Vector and Segall Bryant go up and down completely randomly.

Pair Corralation between Us Vector and Segall Bryant

Assuming the 90 days horizon Us Vector Equity is expected to generate 1.33 times more return on investment than Segall Bryant. However, Us Vector is 1.33 times more volatile than Segall Bryant Hamill. It trades about 0.27 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.33 per unit of risk. If you would invest  2,510  in Us Vector Equity on April 28, 2025 and sell it today you would earn a total of  381.00  from holding Us Vector Equity or generate 15.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Us Vector Equity  vs.  Segall Bryant Hamill

Us Vector Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Us Vector Equity are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Us Vector showed solid returns over the last few months and may actually be approaching a breakup point.

Segall Bryant Hamill

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Segall Bryant Hamill are ranked lower than 26 (%) 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 Us Vector and Segall Bryant

The main advantage of trading using opposite Us Vector and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Vector 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 Us Vector Equity 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.