Correlation Between Kaufman Et and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Kaufman Et and Baillie Gifford 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 Kaufman Et and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaufman Et Broad and Baillie Gifford European, you can compare the effects of market volatilities on Kaufman Et and Baillie Gifford 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 Kaufman Et with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Et and Baillie Gifford.
Diversification Opportunities for Kaufman Et and Baillie Gifford
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kaufman and Baillie is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Et Broad and Baillie Gifford European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford European and Kaufman Et 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 Kaufman Et Broad are associated (or correlated) with Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford European has no effect on the direction of Kaufman Et i.e., Kaufman Et and Baillie Gifford go up and down completely randomly.
Pair Corralation between Kaufman Et and Baillie Gifford
Assuming the 90 days trading horizon Kaufman Et Broad is expected to generate 1.72 times more return on investment than Baillie Gifford. However, Kaufman Et is 1.72 times more volatile than Baillie Gifford European. It trades about 0.05 of its potential returns per unit of risk. Baillie Gifford European is currently generating about 0.02 per unit of risk. If you would invest 2,246 in Kaufman Et Broad on November 30, 2024 and sell it today you would earn a total of 1,049 from holding Kaufman Et Broad or generate 46.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.8% |
Values | Daily Returns |
Kaufman Et Broad vs. Baillie Gifford European
Performance |
Timeline |
Kaufman Et Broad |
Baillie Gifford European |
Kaufman Et and Baillie Gifford Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kaufman Et and Baillie Gifford
The main advantage of trading using opposite Kaufman Et and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Et position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.Kaufman Et vs. Metals Exploration Plc | ||
Kaufman Et vs. Rheinmetall AG | ||
Kaufman Et vs. Bisichi Mining PLC | ||
Kaufman Et vs. Infrastrutture Wireless Italiane |
Baillie Gifford vs. Litigation Capital Management | ||
Baillie Gifford vs. St Galler Kantonalbank | ||
Baillie Gifford vs. TBC Bank Group | ||
Baillie Gifford vs. Chrysalis Investments |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |