Correlation Between Baillie Gifford and Artisan Small
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Artisan Small 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 Artisan Small 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 Artisan Small Cap, you can compare the effects of market volatilities on Baillie Gifford and Artisan Small 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 Artisan Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Artisan Small.
Diversification Opportunities for Baillie Gifford and Artisan Small
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baillie and Artisan is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Artisan Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Small Cap 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 Artisan Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Small Cap has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Artisan Small go up and down completely randomly.
Pair Corralation between Baillie Gifford and Artisan Small
Assuming the 90 days horizon Baillie Gifford Health is expected to generate 1.45 times more return on investment than Artisan Small. However, Baillie Gifford is 1.45 times more volatile than Artisan Small Cap. It trades about -0.01 of its potential returns per unit of risk. Artisan Small Cap is currently generating about -0.08 per unit of risk. If you would invest 590.00 in Baillie Gifford Health on September 13, 2024 and sell it today you would lose (6.00) from holding Baillie Gifford Health or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Baillie Gifford Health vs. Artisan Small Cap
Performance |
| Timeline |
| Baillie Gifford Health |
| Artisan Small Cap |
Baillie Gifford and Artisan Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Artisan Small
The main advantage of trading using opposite Baillie Gifford and Artisan Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Artisan Small 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 Artisan Small will offset losses from the drop in Artisan Small's long position.| Baillie Gifford vs. Ab Select Equity | Baillie Gifford vs. Ab Fixed Income Shares | Baillie Gifford vs. Cutler Equity | Baillie Gifford vs. Us Strategic Equity |
| Artisan Small vs. Pace Smallmedium Value | Artisan Small vs. Touchstone Small Cap | Artisan Small vs. Rbc Small Cap | Artisan Small vs. Aqr Small Cap |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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