Correlation Between Segall Bryant and Versatile Bond

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

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

Diversification Opportunities for Segall Bryant and Versatile Bond

0.94

Correlation Coefficient

Segall Bryant  Versatile Bond

Almost no diversification

The 3 months correlation between Segall and Versatile is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Versatile Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Versatile Bond Portfolio and Segall Bryant 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 Segall Bryant Hamill are associated (or correlated) with Versatile Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Versatile Bond Portfolio has no effect on the direction of Segall Bryant i.e., Segall Bryant and Versatile Bond go up and down completely randomly.

Pair Corralation between Segall Bryant and Versatile Bond

Assuming the 90 days horizon Segall Bryant Hamill is expected to generate 6.53 times more return on investment than Versatile Bond. However, Segall Bryant is 6.53 times more volatile than Versatile Bond Portfolio. It trades about 0.3 of its potential returns per unit of risk. Versatile Bond Portfolio is currently generating about 0.4 per unit of risk. If you would invest  1,247  in Segall Bryant Hamill on May 16, 2025 and sell it today you would earn a total of  168.00  from holding Segall Bryant Hamill or generate 13.47% return on investment over 90 days.

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

Segall Bryant Hamill  vs.  Versatile Bond Portfolio

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 23 (%) 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.

Versatile Bond Portfolio

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in Versatile Bond Portfolio are ranked lower than 31 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Versatile Bond is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Segall Bryant and Versatile Bond

The main advantage of trading using opposite Segall Bryant and Versatile Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Segall Bryant position performs unexpectedly, Versatile Bond 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 Versatile Bond will offset losses from the drop in Versatile Bond's long position.

The idea behind Segall Bryant Hamill and Versatile Bond Portfolio 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.