Correlation Between Baillie Gifford and Eic Value
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Eic Value 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 Eic Value 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 Eic Value Fund, you can compare the effects of market volatilities on Baillie Gifford and Eic Value 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 Eic Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Eic Value.
Diversification Opportunities for Baillie Gifford and Eic Value
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baillie and Eic is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Eic Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eic Value Fund 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 Eic Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eic Value Fund has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Eic Value go up and down completely randomly.
Pair Corralation between Baillie Gifford and Eic Value
If you would invest 1,691 in Eic Value Fund on November 5, 2024 and sell it today you would earn a total of 57.00 from holding Eic Value Fund or generate 3.37% 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. Eic Value Fund
Performance |
| Timeline |
| Baillie Gifford Health |
| Eic Value Fund |
Baillie Gifford and Eic Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Eic Value
The main advantage of trading using opposite Baillie Gifford and Eic Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Eic Value 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 Eic Value will offset losses from the drop in Eic Value's long position.| Baillie Gifford vs. Nuveen Core Equity | Baillie Gifford vs. Aqr Long Short Equity | Baillie Gifford vs. Gmo Global Equity | Baillie Gifford vs. Us Vector Equity |
| Eic Value vs. Jhancock Short Duration | Eic Value vs. Virtus Multi Sector Short | Eic Value vs. Rbc Short Duration | Eic Value vs. Oakhurst Short Duration |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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