Correlation Between Baillie Gifford and Nuveen Minnesota
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Nuveen Minnesota 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 Nuveen Minnesota into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baillie Gifford Emerging and Nuveen Minnesota Municipal, you can compare the effects of market volatilities on Baillie Gifford and Nuveen Minnesota 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 Nuveen Minnesota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Nuveen Minnesota.
Diversification Opportunities for Baillie Gifford and Nuveen Minnesota
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baillie and Nuveen is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Emerging and Nuveen Minnesota Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Minnesota Mun 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 Emerging are associated (or correlated) with Nuveen Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Minnesota Mun has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Nuveen Minnesota go up and down completely randomly.
Pair Corralation between Baillie Gifford and Nuveen Minnesota
Assuming the 90 days horizon Baillie Gifford Emerging is expected to generate 3.95 times more return on investment than Nuveen Minnesota. However, Baillie Gifford is 3.95 times more volatile than Nuveen Minnesota Municipal. It trades about 0.06 of its potential returns per unit of risk. Nuveen Minnesota Municipal is currently generating about 0.1 per unit of risk. If you would invest 1,838 in Baillie Gifford Emerging on September 12, 2024 and sell it today you would earn a total of 327.00 from holding Baillie Gifford Emerging or generate 17.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Emerging vs. Nuveen Minnesota Municipal
Performance |
| Timeline |
| Baillie Gifford Emerging |
| Nuveen Minnesota Mun |
Baillie Gifford and Nuveen Minnesota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Nuveen Minnesota
The main advantage of trading using opposite Baillie Gifford and Nuveen Minnesota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Nuveen Minnesota 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 Nuveen Minnesota will offset losses from the drop in Nuveen Minnesota's long position.| Baillie Gifford vs. Nuveen Minnesota Municipal | Baillie Gifford vs. Blrc Sgy Mnp | Baillie Gifford vs. Ishares Municipal Bond | Baillie Gifford vs. T Rowe Price |
| Nuveen Minnesota vs. Leggmason Partners Institutional | Nuveen Minnesota vs. Rbb Fund | Nuveen Minnesota vs. T Rowe Price | Nuveen Minnesota vs. Materials Portfolio Fidelity |
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.
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