Correlation Between Artisan Global and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Artisan Global 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 Artisan Global and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Global Value and Baillie Gifford Global, you can compare the effects of market volatilities on Artisan Global 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 Artisan Global with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Baillie Gifford.
Diversification Opportunities for Artisan Global and Baillie Gifford
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Artisan and Baillie is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Value and Baillie Gifford Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Global and Artisan Global 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 Artisan Global Value 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 Global has no effect on the direction of Artisan Global i.e., Artisan Global and Baillie Gifford go up and down completely randomly.
Pair Corralation between Artisan Global and Baillie Gifford
Assuming the 90 days horizon Artisan Global Value is expected to generate 0.57 times more return on investment than Baillie Gifford. However, Artisan Global Value is 1.76 times less risky than Baillie Gifford. It trades about -0.02 of its potential returns per unit of risk. Baillie Gifford Global is currently generating about -0.05 per unit of risk. If you would invest 2,351 in Artisan Global Value on October 24, 2024 and sell it today you would lose (32.00) from holding Artisan Global Value or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Global Value vs. Baillie Gifford Global
Performance |
| Timeline |
| Artisan Global Value |
| Baillie Gifford Global |
Artisan Global and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Global and Baillie Gifford
The main advantage of trading using opposite Artisan Global and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global 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.| Artisan Global vs. Artisan Global Opportunities | Artisan Global vs. Artisan International Value | Artisan Global vs. Artisan Global Equity | Artisan Global vs. Oakmark Global Select |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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