Correlation Between Baillie Gifford and Access Flex
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Access Flex 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 Access Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baillie Gifford Eafe and Access Flex High, you can compare the effects of market volatilities on Baillie Gifford and Access Flex 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 Access Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Access Flex.
Diversification Opportunities for Baillie Gifford and Access Flex
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Baillie and Access is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Eafe and Access Flex High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Flex High 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 Eafe are associated (or correlated) with Access Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Flex High has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Access Flex go up and down completely randomly.
Pair Corralation between Baillie Gifford and Access Flex
Assuming the 90 days horizon Baillie Gifford Eafe is expected to under-perform the Access Flex. In addition to that, Baillie Gifford is 3.84 times more volatile than Access Flex High. It trades about 0.0 of its total potential returns per unit of risk. Access Flex High is currently generating about 0.11 per unit of volatility. If you would invest 2,966 in Access Flex High on November 1, 2024 and sell it today you would earn a total of 56.00 from holding Access Flex High or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Eafe vs. Access Flex High
Performance |
| Timeline |
| Baillie Gifford Eafe |
| Access Flex High |
Baillie Gifford and Access Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Access Flex
The main advantage of trading using opposite Baillie Gifford and Access Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Access Flex 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 Access Flex will offset losses from the drop in Access Flex's long position.| Baillie Gifford vs. Allianzgi Global Natural | Baillie Gifford vs. Cohen Steers Mlp | Baillie Gifford vs. Hennessy Bp Energy | Baillie Gifford vs. Vanguard Energy Index |
| Access Flex vs. Transamerica Large Cap | Access Flex vs. Qs Large Cap | Access Flex vs. Qs Large Cap | Access Flex vs. Tiaa Cref Large Cap Value |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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