Correlation Between Baillie Gifford and Mainstay Cushing
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Mainstay Cushing 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 Mainstay Cushing 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 Mainstay Cushing Mlp, you can compare the effects of market volatilities on Baillie Gifford and Mainstay Cushing 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 Mainstay Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Mainstay Cushing.
Diversification Opportunities for Baillie Gifford and Mainstay Cushing
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baillie and Mainstay is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Mainstay Cushing Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Mlp 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 Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Mlp has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Mainstay Cushing go up and down completely randomly.
Pair Corralation between Baillie Gifford and Mainstay Cushing
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Mainstay Cushing. In addition to that, Baillie Gifford is 1.12 times more volatile than Mainstay Cushing Mlp. It trades about -0.01 of its total potential returns per unit of risk. Mainstay Cushing Mlp is currently generating about 0.15 per unit of volatility. If you would invest 1,020 in Mainstay Cushing Mlp on November 2, 2024 and sell it today you would earn a total of 189.00 from holding Mainstay Cushing Mlp or generate 18.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
Baillie Gifford Health vs. Mainstay Cushing Mlp
Performance |
| Timeline |
| Baillie Gifford Health |
| Mainstay Cushing Mlp |
Baillie Gifford and Mainstay Cushing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Mainstay Cushing
The main advantage of trading using opposite Baillie Gifford and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Mainstay Cushing 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 Mainstay Cushing will offset losses from the drop in Mainstay Cushing'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 |
| Mainstay Cushing vs. Goldman Sachs Strategic | Mainstay Cushing vs. Investment Managers Series | Mainstay Cushing vs. Sprott Gold Equity | Mainstay Cushing vs. Fidelity Advisor Gold |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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