Correlation Between Baillie Gifford and Chase Growth
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Chase Growth 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 Chase Growth 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 Chase Growth Fund, you can compare the effects of market volatilities on Baillie Gifford and Chase Growth 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 Chase Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Chase Growth.
Diversification Opportunities for Baillie Gifford and Chase Growth
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baillie and Chase is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Eafe and Chase Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase Growth 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 Chase Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chase Growth has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Chase Growth go up and down completely randomly.
Pair Corralation between Baillie Gifford and Chase Growth
Assuming the 90 days horizon Baillie Gifford is expected to generate 2.17 times less return on investment than Chase Growth. In addition to that, Baillie Gifford is 1.1 times more volatile than Chase Growth Fund. It trades about 0.06 of its total potential returns per unit of risk. Chase Growth Fund is currently generating about 0.14 per unit of volatility. If you would invest 1,246 in Chase Growth Fund on September 2, 2024 and sell it today you would earn a total of 523.00 from holding Chase Growth Fund or generate 41.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Eafe vs. Chase Growth Fund
Performance |
| Timeline |
| Baillie Gifford Eafe |
| Chase Growth |
Baillie Gifford and Chase Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Chase Growth
The main advantage of trading using opposite Baillie Gifford and Chase Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Chase Growth 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 Chase Growth will offset losses from the drop in Chase Growth'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 |
| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. Cambiar Opportunity Fund | Chase Growth vs. Amg Managers Brandywine |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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