Correlation Between Baillie Gifford and Columbia Mortgage
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Columbia Mortgage 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 Columbia Mortgage 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 Columbia Mortgage Opportunities, you can compare the effects of market volatilities on Baillie Gifford and Columbia Mortgage 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 Columbia Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Columbia Mortgage.
Diversification Opportunities for Baillie Gifford and Columbia Mortgage
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baillie and Columbia is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Columbia Mortgage Opportunitie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Mortgage 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 Columbia Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Mortgage has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Columbia Mortgage go up and down completely randomly.
Pair Corralation between Baillie Gifford and Columbia Mortgage
Assuming the 90 days horizon Baillie Gifford is expected to generate 1.47 times less return on investment than Columbia Mortgage. In addition to that, Baillie Gifford is 3.55 times more volatile than Columbia Mortgage Opportunities. It trades about 0.03 of its total potential returns per unit of risk. Columbia Mortgage Opportunities is currently generating about 0.14 per unit of volatility. If you would invest 765.00 in Columbia Mortgage Opportunities on September 13, 2024 and sell it today you would earn a total of 57.00 from holding Columbia Mortgage Opportunities or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Columbia Mortgage Opportunitie
Performance |
| Timeline |
| Baillie Gifford Health |
| Columbia Mortgage |
Baillie Gifford and Columbia Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Columbia Mortgage
The main advantage of trading using opposite Baillie Gifford and Columbia Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Columbia Mortgage 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 Columbia Mortgage will offset losses from the drop in Columbia Mortgage's long position.| Baillie Gifford vs. Jhancock Disciplined Value | Baillie Gifford vs. Aqr Large Cap | Baillie Gifford vs. Fisher Large Cap | Baillie Gifford vs. Enhanced Large Pany |
| Columbia Mortgage vs. Columbia Porate Income | Columbia Mortgage vs. Columbia Ultra Short | Columbia Mortgage vs. Columbia Treasury Index | Columbia Mortgage vs. Multi Manager Directional Alternative |
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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