Correlation Between Segall Bryant and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Segall Bryant and Mainstay Convertible 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 Mainstay Convertible 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 Mainstay Vertible Fund, you can compare the effects of market volatilities on Segall Bryant and Mainstay Convertible 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 Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Segall Bryant and Mainstay Convertible.
Diversification Opportunities for Segall Bryant and Mainstay Convertible
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Segall and Mainstay is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Segall Bryant Hamill and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible 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 Mainstay Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Convertible has no effect on the direction of Segall Bryant i.e., Segall Bryant and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Segall Bryant and Mainstay Convertible
Assuming the 90 days horizon Segall Bryant Hamill is expected to generate 1.57 times more return on investment than Mainstay Convertible. However, Segall Bryant is 1.57 times more volatile than Mainstay Vertible Fund. It trades about 0.09 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.05 per unit of risk. If you would invest 924.00 in Segall Bryant Hamill on April 6, 2025 and sell it today you would earn a total of 421.00 from holding Segall Bryant Hamill or generate 45.56% 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. Mainstay Vertible Fund
Performance |
| Timeline |
| Segall Bryant Hamill |
| Mainstay Convertible |
Segall Bryant and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Segall Bryant and Mainstay Convertible
The main advantage of trading using opposite Segall Bryant and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Segall Bryant position performs unexpectedly, Mainstay Convertible 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 Mainstay Convertible will offset losses from the drop in Mainstay Convertible's long position.| Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill |
| Mainstay Convertible vs. Gmo Emerging Markets | Mainstay Convertible vs. Ep Emerging Markets | Mainstay Convertible vs. Transamerica Emerging Markets | Mainstay Convertible vs. William Blair Emerging |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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