Correlation Between Astor Longshort and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Astor Longshort 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 Astor Longshort and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Longshort Fund and Baillie Gifford Global, you can compare the effects of market volatilities on Astor Longshort 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 Astor Longshort with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Baillie Gifford.
Diversification Opportunities for Astor Longshort and Baillie Gifford
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Astor and Baillie is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund 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 Astor Longshort 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 Astor Longshort 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 Global has no effect on the direction of Astor Longshort i.e., Astor Longshort and Baillie Gifford go up and down completely randomly.
Pair Corralation between Astor Longshort and Baillie Gifford
Assuming the 90 days horizon Astor Longshort is expected to generate 1.12 times less return on investment than Baillie Gifford. But when comparing it to its historical volatility, Astor Longshort Fund is 2.45 times less risky than Baillie Gifford. It trades about 0.13 of its potential returns per unit of risk. Baillie Gifford Global is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,989 in Baillie Gifford Global on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Baillie Gifford Global or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Baillie Gifford Global
Performance |
| Timeline |
| Astor Longshort |
| Baillie Gifford Global |
Astor Longshort and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Baillie Gifford
The main advantage of trading using opposite Astor Longshort and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort 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.| Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Longshort Fund | Astor Longshort vs. Astor Longshort Fund |
| Baillie Gifford vs. Touchstone Ultra Short | Baillie Gifford vs. Astor Longshort Fund | Baillie Gifford vs. Boston Partners Longshort | Baillie Gifford vs. Siit Ultra Short |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |