Correlation Between Baillie Gifford and Dreyfus Bond
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Dreyfus Bond 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 Dreyfus Bond 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 Dreyfus Bond Market, you can compare the effects of market volatilities on Baillie Gifford and Dreyfus Bond 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 Dreyfus Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Dreyfus Bond.
Diversification Opportunities for Baillie Gifford and Dreyfus Bond
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Baillie and Dreyfus is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Dreyfus Bond Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Bond Market 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 Dreyfus Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Bond Market has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Dreyfus Bond go up and down completely randomly.
Pair Corralation between Baillie Gifford and Dreyfus Bond
If you would invest 884.00 in Dreyfus Bond Market on November 7, 2024 and sell it today you would earn a total of 5.00 from holding Dreyfus Bond Market or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Dreyfus Bond Market
Performance |
| Timeline |
| Baillie Gifford Health |
| Dreyfus Bond Market |
Baillie Gifford and Dreyfus Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Dreyfus Bond
The main advantage of trading using opposite Baillie Gifford and Dreyfus Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Dreyfus Bond 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 Dreyfus Bond will offset losses from the drop in Dreyfus Bond's long position.| Baillie Gifford vs. Gmo High Yield | Baillie Gifford vs. Guggenheim High Yield | Baillie Gifford vs. Pace High Yield | Baillie Gifford vs. Six Circles Credit |
| Dreyfus Bond vs. Dreyfusstandish Global Fixed | Dreyfus Bond vs. Wisdomtree Siegel Global | Dreyfus Bond vs. Barings Global Floating | Dreyfus Bond vs. Rbc Global Equity |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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