Correlation Between Segall Bryant and Multimedia Portfolio

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

Diversification Opportunities for Segall Bryant and Multimedia Portfolio

-0.61

Correlation Coefficient

Segall Bryant  Multimedia Portfolio

Excellent diversification

The 3 months correlation between Segall and Multimedia is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Multimedia Portfolio Multimedi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimedia 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 Multimedia Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimedia Portfolio has no effect on the direction of Segall Bryant i.e., Segall Bryant and Multimedia Portfolio go up and down completely randomly.

Pair Corralation between Segall Bryant and Multimedia Portfolio

Assuming the 90 days horizon Segall Bryant Hamill is expected to under-perform the Multimedia Portfolio. But the mutual fund apears to be less risky and, when comparing its historical volatility, Segall Bryant Hamill is 1.31 times less risky than Multimedia Portfolio. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Multimedia Portfolio Multimedia is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  10,114  in Multimedia Portfolio Multimedia on September 16, 2024 and sell it today you would earn a total of  1,470  from holding Multimedia Portfolio Multimedia or generate 14.53% 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.  Multimedia Portfolio Multimedi

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 forward indicators, Segall Bryant is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Multimedia Portfolio

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Multimedia Portfolio Multimedia are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Multimedia Portfolio showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Segall Bryant and Multimedia Portfolio

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

The idea behind Segall Bryant Hamill and Multimedia Portfolio Multimedia 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.