Correlation Between Heartland Value and Segall Bryant

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

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

Diversification Opportunities for Heartland Value and Segall Bryant

-0.55

Correlation Coefficient

Heartland Value  Segall Bryant

Excellent diversification

The 3 months correlation between Heartland and Segall is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Heartland Value Plus 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 Heartland Value 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 Heartland Value Plus 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 Heartland Value i.e., Heartland Value and Segall Bryant go up and down completely randomly.

Pair Corralation between Heartland Value and Segall Bryant

Assuming the 90 days horizon Heartland Value Plus is expected to generate 1.44 times more return on investment than Segall Bryant. However, Heartland Value is 1.44 times more volatile than Segall Bryant Hamill. It trades about 0.14 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about -0.03 per unit of risk. If you would invest  3,663  in Heartland Value Plus on September 1, 2024 and sell it today you would earn a total of  388.00  from holding Heartland Value Plus or generate 10.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Heartland Value Plus  vs.  Segall Bryant Hamill

Heartland Value Plus

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Heartland Value Plus are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Heartland Value may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Segall Bryant Hamill

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Segall Bryant Hamill 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.

Pair Trading with Heartland Value and Segall Bryant

The main advantage of trading using opposite Heartland Value and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heartland Value 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 Heartland Value Plus 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.