Correlation Between Baillie Gifford and American Century
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and American Century 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 American Century into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baillie Gifford Health and American Century One, you can compare the effects of market volatilities on Baillie Gifford and American Century 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 American Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and American Century.
Diversification Opportunities for Baillie Gifford and American Century
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baillie and American is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and American Century One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Century One 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 Health are associated (or correlated) with American Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Century One has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and American Century go up and down completely randomly.
Pair Corralation between Baillie Gifford and American Century
If you would invest 1,101 in American Century One on November 3, 2024 and sell it today you would earn a total of 40.00 from holding American Century One or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. American Century One
Performance |
| Timeline |
| Baillie Gifford Health |
| American Century One |
Baillie Gifford and American Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and American Century
The main advantage of trading using opposite Baillie Gifford and American Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, American Century 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 American Century will offset losses from the drop in American Century's long position.| Baillie Gifford vs. Rbc Bluebay Global | Baillie Gifford vs. Aqr Risk Parity | Baillie Gifford vs. Needham Aggressive Growth | Baillie Gifford vs. Calamos High Income |
| American Century vs. Federated Government Income | American Century vs. Ishares Municipal Bond | American Century vs. Hartford Municipal Short | American Century vs. Franklin Adjustable Government |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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