Correlation Between Equity Growth and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Equity Growth and Baillie Gifford 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 Equity Growth and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Equity Growth and Baillie Gifford Emerging, you can compare the effects of market volatilities on Equity Growth and Baillie Gifford 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 Equity Growth with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equity Growth and Baillie Gifford.
Diversification Opportunities for Equity Growth and Baillie Gifford
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Equity and Baillie is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding The Equity Growth and Baillie Gifford Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Emerging and Equity Growth 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 The Equity Growth are associated (or correlated) with Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford Emerging has no effect on the direction of Equity Growth i.e., Equity Growth and Baillie Gifford go up and down completely randomly.
Pair Corralation between Equity Growth and Baillie Gifford
Assuming the 90 days horizon The Equity Growth is expected to generate 1.34 times more return on investment than Baillie Gifford. However, Equity Growth is 1.34 times more volatile than Baillie Gifford Emerging. It trades about 0.2 of its potential returns per unit of risk. Baillie Gifford Emerging is currently generating about 0.09 per unit of risk. If you would invest 2,738 in The Equity Growth on November 4, 2024 and sell it today you would earn a total of 153.00 from holding The Equity Growth or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Equity Growth vs. Baillie Gifford Emerging
Performance |
| Timeline |
| Equity Growth |
| Baillie Gifford Emerging |
Equity Growth and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equity Growth and Baillie Gifford
The main advantage of trading using opposite Equity Growth and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equity Growth position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.| Equity Growth vs. Hunter Small Cap | Equity Growth vs. Franklin Small Cap | Equity Growth vs. Kinetics Small Cap | Equity Growth vs. Glg Intl Small |
| Baillie Gifford vs. Columbia Moderate Growth | Baillie Gifford vs. College Retirement Equities | Baillie Gifford vs. Wilmington Trust Retirement | Baillie Gifford vs. Great West Moderately Aggressive |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |