Correlation Between Baillie Gifford and Fidelity Asset
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Fidelity Asset 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 Fidelity Asset 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 Fidelity Asset Manager, you can compare the effects of market volatilities on Baillie Gifford and Fidelity Asset 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 Fidelity Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Fidelity Asset.
Diversification Opportunities for Baillie Gifford and Fidelity Asset
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baillie and Fidelity is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Fidelity Asset Manager in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Asset Manager 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 Fidelity Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Asset Manager has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Fidelity Asset go up and down completely randomly.
Pair Corralation between Baillie Gifford and Fidelity Asset
Assuming the 90 days horizon Baillie Gifford is expected to generate 26.77 times less return on investment than Fidelity Asset. In addition to that, Baillie Gifford is 5.91 times more volatile than Fidelity Asset Manager. It trades about 0.0 of its total potential returns per unit of risk. Fidelity Asset Manager is currently generating about 0.28 per unit of volatility. If you would invest 1,364 in Fidelity Asset Manager on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Fidelity Asset Manager or generate 1.47% 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. Fidelity Asset Manager
Performance |
| Timeline |
| Baillie Gifford Health |
| Fidelity Asset Manager |
Baillie Gifford and Fidelity Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Fidelity Asset
The main advantage of trading using opposite Baillie Gifford and Fidelity Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Fidelity Asset 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 Fidelity Asset will offset losses from the drop in Fidelity Asset's long position.| Baillie Gifford vs. The Eafe Pure | Baillie Gifford vs. The Long Term | Baillie Gifford vs. Baillie Gifford International | Baillie Gifford vs. Baillie Gifford International |
| Fidelity Asset vs. Pgim Conservative Retirement | Fidelity Asset vs. Pimco Diversified Income | Fidelity Asset vs. Harbor Diversified International | Fidelity Asset vs. Huber Capital Diversified |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |