Correlation Between Armada Hflr and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Armada Hflr 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 Armada Hflr and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hflr Pr and Baillie Gifford European, you can compare the effects of market volatilities on Armada Hflr 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 Armada Hflr with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Baillie Gifford.
Diversification Opportunities for Armada Hflr and Baillie Gifford
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Baillie is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr 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 Armada Hflr 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 Armada Hflr Pr 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 Armada Hflr i.e., Armada Hflr and Baillie Gifford go up and down completely randomly.
Pair Corralation between Armada Hflr and Baillie Gifford
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 1.47 times more return on investment than Baillie Gifford. However, Armada Hflr is 1.47 times more volatile than Baillie Gifford European. It trades about 0.01 of its potential returns per unit of risk. Baillie Gifford European is currently generating about 0.01 per unit of risk. If you would invest 1,020 in Armada Hflr Pr on September 19, 2024 and sell it today you would earn a total of 9.00 from holding Armada Hflr Pr or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Armada Hflr Pr vs. Baillie Gifford European
Performance |
| Timeline |
| Armada Hflr Pr |
| Baillie Gifford European |
Armada Hflr and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Baillie Gifford
The main advantage of trading using opposite Armada Hflr and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr 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.| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
| Baillie Gifford vs. British American Tobacco | Baillie Gifford vs. Gaztransport et Technigaz | Baillie Gifford vs. Pets at Home | Baillie Gifford vs. Fulcrum Metals PLC |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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