Correlation Between Baillie Gifford and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Jacquet Metal 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 Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baillie Gifford European and Jacquet Metal Service, you can compare the effects of market volatilities on Baillie Gifford and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Jacquet Metal.
Diversification Opportunities for Baillie Gifford and Jacquet Metal
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Baillie and Jacquet is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford European and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 European are associated (or correlated) with Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Jacquet Metal go up and down completely randomly.
Pair Corralation between Baillie Gifford and Jacquet Metal
Assuming the 90 days trading horizon Baillie Gifford European is expected to under-perform the Jacquet Metal. But the stock apears to be less risky and, when comparing its historical volatility, Baillie Gifford European is 2.39 times less risky than Jacquet Metal. The stock trades about -0.01 of its potential returns per unit of risk. The Jacquet Metal Service is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,587 in Jacquet Metal Service on September 26, 2024 and sell it today you would earn a total of 118.00 from holding Jacquet Metal Service or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford European vs. Jacquet Metal Service
Performance |
| Timeline |
| Baillie Gifford European |
| Jacquet Metal Service |
Baillie Gifford and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Jacquet Metal
The main advantage of trading using opposite Baillie Gifford and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| Baillie Gifford vs. Jacquet Metal Service | Baillie Gifford vs. European Metals Holdings | Baillie Gifford vs. Beowulf Mining | Baillie Gifford vs. iShares Physical Silver |
| Jacquet Metal vs. Uniper SE | Jacquet Metal vs. Mulberry Group PLC | Jacquet Metal vs. London Security Plc | Jacquet Metal vs. Triad Group PLC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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