Correlation Between Baillie Gifford and Abbey Capital
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Abbey Capital 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 Abbey Capital 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 Abbey Capital Futures, you can compare the effects of market volatilities on Baillie Gifford and Abbey Capital 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 Abbey Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Abbey Capital.
Diversification Opportunities for Baillie Gifford and Abbey Capital
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baillie and Abbey is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Abbey Capital Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abbey Capital Futures 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 Abbey Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abbey Capital Futures has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Abbey Capital go up and down completely randomly.
Pair Corralation between Baillie Gifford and Abbey Capital
If you would invest 573.00 in Baillie Gifford Health on November 30, 2024 and sell it today you would earn a total of 0.00 from holding Baillie Gifford Health or generate 0.0% 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. Abbey Capital Futures
Performance |
| Timeline |
| Baillie Gifford Health |
| Abbey Capital Futures |
Baillie Gifford and Abbey Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Abbey Capital
The main advantage of trading using opposite Baillie Gifford and Abbey Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Abbey Capital 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 Abbey Capital will offset losses from the drop in Abbey Capital's long position.| Baillie Gifford vs. Dreyfusstandish Global Fixed | Baillie Gifford vs. Dodge International Stock | Baillie Gifford vs. Guidemark E Fixed | Baillie Gifford vs. T Rowe Price |
| Abbey Capital vs. Doubleline Total Return | Abbey Capital vs. Multisector Bond Sma | Abbey Capital vs. Praxis Impact Bond | Abbey Capital vs. Goldman Sachs Bond |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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