Correlation Between Baillie Gifford and Baird Midcap
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Baird Midcap 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 Baird Midcap 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 Baird Midcap Fund, you can compare the effects of market volatilities on Baillie Gifford and Baird Midcap 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 Baird Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Baird Midcap.
Diversification Opportunities for Baillie Gifford and Baird Midcap
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baillie and Baird is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Baird Midcap Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Midcap 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 Baird Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Midcap has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Baird Midcap go up and down completely randomly.
Pair Corralation between Baillie Gifford and Baird Midcap
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Baird Midcap. In addition to that, Baillie Gifford is 1.3 times more volatile than Baird Midcap Fund. It trades about -0.03 of its total potential returns per unit of risk. Baird Midcap Fund is currently generating about 0.03 per unit of volatility. If you would invest 2,143 in Baird Midcap Fund on September 1, 2024 and sell it today you would earn a total of 242.00 from holding Baird Midcap Fund or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Baird Midcap Fund
Performance |
| Timeline |
| Baillie Gifford Health |
| Baird Midcap |
Baillie Gifford and Baird Midcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Baird Midcap
The main advantage of trading using opposite Baillie Gifford and Baird Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Baird Midcap 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 Baird Midcap will offset losses from the drop in Baird Midcap's long position.| Baillie Gifford vs. The Eafe Pure | Baillie Gifford vs. The Long Term | Baillie Gifford vs. Baillie Gifford International | Baillie Gifford vs. Baillie Gifford International |
| Baird Midcap vs. Siit High Yield | Baird Midcap vs. Federated Institutional High | Baird Midcap vs. Artisan High Income | Baird Midcap vs. Legg Mason Partners |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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