Correlation Between Baillie Gifford and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Ambrus Core 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 Ambrus Core 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 Ambrus Core Bond, you can compare the effects of market volatilities on Baillie Gifford and Ambrus Core 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 Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Ambrus Core.
Diversification Opportunities for Baillie Gifford and Ambrus Core
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baillie and Ambrus is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Eafe and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core Bond 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 Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Ambrus Core go up and down completely randomly.
Pair Corralation between Baillie Gifford and Ambrus Core
Assuming the 90 days horizon Baillie Gifford Eafe is expected to generate 5.71 times more return on investment than Ambrus Core. However, Baillie Gifford is 5.71 times more volatile than Ambrus Core Bond. It trades about 0.05 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.14 per unit of risk. If you would invest 1,328 in Baillie Gifford Eafe on September 2, 2024 and sell it today you would earn a total of 84.00 from holding Baillie Gifford Eafe or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Eafe vs. Ambrus Core Bond
Performance |
| Timeline |
| Baillie Gifford Eafe |
| Ambrus Core Bond |
Baillie Gifford and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Ambrus Core
The main advantage of trading using opposite Baillie Gifford and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Ambrus Core 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 Ambrus Core will offset losses from the drop in Ambrus Core's long position.| Baillie Gifford vs. The Eafe Pure | Baillie Gifford vs. The Long Term | Baillie Gifford vs. Baillie Gifford China | Baillie Gifford vs. Baillie Gifford China |
| Ambrus Core vs. John Hancock Financial | Ambrus Core vs. Vanguard Financials Index | Ambrus Core vs. Transamerica Financial Life | Ambrus Core vs. Blackrock Financial Institutions |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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