Correlation Between Wells Fargo and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Wells Fargo 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 Wells Fargo and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wells Fargo Diversified and Segall Bryant Hamill, you can compare the effects of market volatilities on Wells Fargo 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 Wells Fargo with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wells Fargo and Segall Bryant.
Diversification Opportunities for Wells Fargo and Segall Bryant
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wells and Segall is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Wells Fargo Diversified 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 Wells Fargo 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 Wells Fargo Diversified 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 Wells Fargo i.e., Wells Fargo and Segall Bryant go up and down completely randomly.
Pair Corralation between Wells Fargo and Segall Bryant
Assuming the 90 days horizon Wells Fargo Diversified is expected to generate 3.74 times more return on investment than Segall Bryant. However, Wells Fargo is 3.74 times more volatile than Segall Bryant Hamill. It trades about 0.34 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.36 per unit of risk. If you would invest 602.00 in Wells Fargo Diversified on April 15, 2025 and sell it today you would earn a total of 11.00 from holding Wells Fargo Diversified or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Wells Fargo Diversified vs. Segall Bryant Hamill
Performance |
| Timeline |
| Wells Fargo Diversified |
| Segall Bryant Hamill |
Wells Fargo and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wells Fargo and Segall Bryant
The main advantage of trading using opposite Wells Fargo and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wells Fargo 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.| Wells Fargo vs. Nasdaq 100 Index Fund | Wells Fargo vs. Pnc Emerging Markets | Wells Fargo vs. Extended Market Index | Wells Fargo vs. Ep Emerging Markets |
| Segall Bryant vs. Qs Defensive Growth | Segall Bryant vs. L Abbett Growth | Segall Bryant vs. Pnc International Growth | Segall Bryant vs. Tfa Alphagen Growth |
Check out your portfolio center.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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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