Correlation Between Short Duration and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Short Duration 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 Short Duration and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Duration Inflation and Baillie Gifford Health, you can compare the effects of market volatilities on Short Duration 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 Short Duration with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short Duration and Baillie Gifford.
Diversification Opportunities for Short Duration and Baillie Gifford
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Short and Baillie is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Short Duration Inflation and Baillie Gifford Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Health and Short Duration 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 Short Duration Inflation 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 Health has no effect on the direction of Short Duration i.e., Short Duration and Baillie Gifford go up and down completely randomly.
Pair Corralation between Short Duration and Baillie Gifford
Assuming the 90 days horizon Short Duration Inflation is expected to generate 0.15 times more return on investment than Baillie Gifford. However, Short Duration Inflation is 6.52 times less risky than Baillie Gifford. It trades about 0.09 of its potential returns per unit of risk. Baillie Gifford Health is currently generating about -0.03 per unit of risk. If you would invest 954.00 in Short Duration Inflation on October 31, 2024 and sell it today you would earn a total of 84.00 from holding Short Duration Inflation or generate 8.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Short Duration Inflation vs. Baillie Gifford Health
Performance |
| Timeline |
| Short Duration Inflation |
| Baillie Gifford Health |
Short Duration and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Short Duration and Baillie Gifford
The main advantage of trading using opposite Short Duration and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short Duration 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.| Short Duration vs. Amg River Road | Short Duration vs. Heartland Value Plus | Short Duration vs. Ab Small Cap | Short Duration vs. American Century Etf |
| Baillie Gifford vs. Aqr Sustainable Long Short | Baillie Gifford vs. Cmg Ultra Short | Baillie Gifford vs. Virtus Multi Sector Short | Baillie Gifford vs. Federated Government Ultrashort |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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