Correlation Between Europacific Growth and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Europacific Growth 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 Europacific Growth and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europacific Growth Fund and Baillie Gifford International, you can compare the effects of market volatilities on Europacific Growth 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 Europacific Growth with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europacific Growth and Baillie Gifford.
Diversification Opportunities for Europacific Growth and Baillie Gifford
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Europacific and Baillie is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Europacific Growth Fund and Baillie Gifford International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Inte and Europacific Growth 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 Europacific Growth Fund 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 Inte has no effect on the direction of Europacific Growth i.e., Europacific Growth and Baillie Gifford go up and down completely randomly.
Pair Corralation between Europacific Growth and Baillie Gifford
Assuming the 90 days horizon Europacific Growth is expected to generate 140.7 times less return on investment than Baillie Gifford. But when comparing it to its historical volatility, Europacific Growth Fund is 1.49 times less risky than Baillie Gifford. It trades about 0.0 of its potential returns per unit of risk. Baillie Gifford International is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 725.00 in Baillie Gifford International on September 2, 2024 and sell it today you would earn a total of 65.00 from holding Baillie Gifford International or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europacific Growth Fund vs. Baillie Gifford International
Performance |
| Timeline |
| Europacific Growth |
| Baillie Gifford Inte |
Europacific Growth and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europacific Growth and Baillie Gifford
The main advantage of trading using opposite Europacific Growth and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europacific Growth 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.| Europacific Growth vs. Amg Managers Centersquare | Europacific Growth vs. Prudential Real Estate | Europacific Growth vs. Goldman Sachs Real | Europacific Growth vs. Us Real Estate |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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