Correlation Between Segall Bryant and Nexpoint Real

Can any of the company-specific risk be diversified away by investing in both Segall Bryant and Nexpoint Real 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 Nexpoint Real 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 Nexpoint Real Estate, you can compare the effects of market volatilities on Segall Bryant and Nexpoint Real 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 Nexpoint Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Segall Bryant and Nexpoint Real.

Diversification Opportunities for Segall Bryant and Nexpoint Real

-0.6

Correlation Coefficient

Segall Bryant  Nexpoint Real

Excellent diversification

The 3 months correlation between Segall and Nexpoint is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Nexpoint Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexpoint Real Estate 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 Nexpoint Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexpoint Real Estate has no effect on the direction of Segall Bryant i.e., Segall Bryant and Nexpoint Real go up and down completely randomly.

Pair Corralation between Segall Bryant and Nexpoint Real

Assuming the 90 days horizon Segall Bryant Hamill is expected to under-perform the Nexpoint Real. In addition to that, Segall Bryant is 5.62 times more volatile than Nexpoint Real Estate. It trades about -0.11 of its total potential returns per unit of risk. Nexpoint Real Estate is currently generating about 0.3 per unit of volatility. If you would invest  1,622  in Nexpoint Real Estate on September 14, 2024 and sell it today you would earn a total of  24.00  from holding Nexpoint Real Estate or generate 1.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Segall Bryant Hamill  vs.  Nexpoint Real Estate

Segall Bryant Hamill

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Segall Bryant Hamill are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. 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.

Nexpoint Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nexpoint Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Nexpoint Real 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 Nexpoint Real

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

The idea behind Segall Bryant Hamill and Nexpoint Real Estate 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..