Correlation Between Baillie Gifford and Eafe Fund
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Eafe Fund 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 Baillie Gifford and Eafe Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baillie Gifford China and The Eafe Fund, you can compare the effects of market volatilities on Baillie Gifford and Eafe Fund 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 Baillie Gifford with a short position of Eafe Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Eafe Fund.
Diversification Opportunities for Baillie Gifford and Eafe Fund
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baillie and Eafe is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford China and The Eafe Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eafe Fund and Baillie Gifford 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 Baillie Gifford China are associated (or correlated) with Eafe Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eafe Fund has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Eafe Fund go up and down completely randomly.
Pair Corralation between Baillie Gifford and Eafe Fund
If you would invest 902.00 in Baillie Gifford China on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Baillie Gifford China or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford China vs. The Eafe Fund
Performance |
| Timeline |
| Baillie Gifford China |
| Eafe Fund |
Baillie Gifford and Eafe Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Eafe Fund
The main advantage of trading using opposite Baillie Gifford and Eafe Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Eafe Fund 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 Eafe Fund will offset losses from the drop in Eafe Fund's long position.| Baillie Gifford vs. The Eafe Pure | Baillie Gifford vs. The Long Term | Baillie Gifford vs. Baillie Gifford International | Baillie Gifford vs. Baillie Gifford International |
| Eafe Fund vs. The Long Term | Eafe Fund vs. Baillie Gifford China | Eafe Fund vs. Baillie Gifford China | Eafe Fund vs. The Global Alpha |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |