Correlation Between Baillie Gifford and Fidelity Stock
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Fidelity Stock 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 Stock 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 Stock Selector, you can compare the effects of market volatilities on Baillie Gifford and Fidelity Stock 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 Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Fidelity Stock.
Diversification Opportunities for Baillie Gifford and Fidelity Stock
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baillie and Fidelity is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Fidelity Stock Selector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Stock Selector 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 Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Stock Selector has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Fidelity Stock go up and down completely randomly.
Pair Corralation between Baillie Gifford and Fidelity Stock
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Fidelity Stock. In addition to that, Baillie Gifford is 1.82 times more volatile than Fidelity Stock Selector. It trades about -0.01 of its total potential returns per unit of risk. Fidelity Stock Selector is currently generating about 0.08 per unit of volatility. If you would invest 2,259 in Fidelity Stock Selector on September 14, 2024 and sell it today you would earn a total of 771.00 from holding Fidelity Stock Selector or generate 34.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Fidelity Stock Selector
Performance |
| Timeline |
| Baillie Gifford Health |
| Fidelity Stock Selector |
Baillie Gifford and Fidelity Stock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Fidelity Stock
The main advantage of trading using opposite Baillie Gifford and Fidelity Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Fidelity Stock 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 Stock will offset losses from the drop in Fidelity Stock's long position.| Baillie Gifford vs. Ab Select Equity | Baillie Gifford vs. Ab Fixed Income Shares | Baillie Gifford vs. Cutler Equity | Baillie Gifford vs. Us Strategic Equity |
| Fidelity Stock vs. Fidelity New Markets | Fidelity Stock vs. Fidelity New Markets | Fidelity Stock vs. Fidelity Advisor Sustainable | Fidelity Stock vs. Fidelity New Markets |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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