Correlation Between Baillie Gifford and Wells Fargo
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Wells Fargo 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 Wells Fargo 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 Wells Fargo Cb, you can compare the effects of market volatilities on Baillie Gifford and Wells Fargo 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 Wells Fargo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Wells Fargo.
Diversification Opportunities for Baillie Gifford and Wells Fargo
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baillie and Wells is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Wells Fargo Cb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wells Fargo Cb 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 Wells Fargo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wells Fargo Cb has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Wells Fargo go up and down completely randomly.
Pair Corralation between Baillie Gifford and Wells Fargo
If you would invest 573.00 in Baillie Gifford Health on November 28, 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. Wells Fargo Cb
Performance |
| Timeline |
| Baillie Gifford Health |
| Wells Fargo Cb |
Baillie Gifford and Wells Fargo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Wells Fargo
The main advantage of trading using opposite Baillie Gifford and Wells Fargo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Wells Fargo 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 Wells Fargo will offset losses from the drop in Wells Fargo's long position.| Baillie Gifford vs. Siit Emerging Markets | Baillie Gifford vs. Gmo Emerging Markets | Baillie Gifford vs. Pnc Emerging Markets | Baillie Gifford vs. Goldman Sachs Emerging |
| Wells Fargo vs. Tfa Alphagen Growth | Wells Fargo vs. The Hartford International | Wells Fargo vs. Rational Defensive Growth | Wells Fargo vs. Morgan Stanley Institutional |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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