Correlation Between Baillie Gifford and Aqr International
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Aqr International 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 Aqr International 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 Aqr International Defensive, you can compare the effects of market volatilities on Baillie Gifford and Aqr International 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 Aqr International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Aqr International.
Diversification Opportunities for Baillie Gifford and Aqr International
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Baillie and Aqr is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Aqr International Defensive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr International 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 Aqr International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr International has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Aqr International go up and down completely randomly.
Pair Corralation between Baillie Gifford and Aqr International
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Aqr International. In addition to that, Baillie Gifford is 2.39 times more volatile than Aqr International Defensive. It trades about -0.03 of its total potential returns per unit of risk. Aqr International Defensive is currently generating about 0.03 per unit of volatility. If you would invest 1,442 in Aqr International Defensive on November 1, 2024 and sell it today you would earn a total of 15.00 from holding Aqr International Defensive or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Baillie Gifford Health vs. Aqr International Defensive
Performance |
| Timeline |
| Baillie Gifford Health |
| Aqr International |
Baillie Gifford and Aqr International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Aqr International
The main advantage of trading using opposite Baillie Gifford and Aqr International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Aqr International 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 Aqr International will offset losses from the drop in Aqr International's long position.| Baillie Gifford vs. Artisan High Income | Baillie Gifford vs. Flexible Bond Portfolio | Baillie Gifford vs. Inflation Adjusted Bond Fund | Baillie Gifford vs. Morningstar Defensive Bond |
| Aqr International vs. Tax Managed Mid Small | Aqr International vs. Rbc Small Cap | Aqr International vs. Goldman Sachs Smallmid | Aqr International vs. Smallcap Fund Fka |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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