Correlation Between Baillie Gifford and Growth Allocation
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Growth Allocation 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 Growth Allocation 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 Growth Allocation Fund, you can compare the effects of market volatilities on Baillie Gifford and Growth Allocation 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 Growth Allocation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Growth Allocation.
Diversification Opportunities for Baillie Gifford and Growth Allocation
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baillie and Growth is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Growth Allocation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Allocation 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 Growth Allocation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Allocation has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Growth Allocation go up and down completely randomly.
Pair Corralation between Baillie Gifford and Growth Allocation
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Growth Allocation. In addition to that, Baillie Gifford is 2.28 times more volatile than Growth Allocation Fund. It trades about -0.03 of its total potential returns per unit of risk. Growth Allocation Fund is currently generating about 0.09 per unit of volatility. If you would invest 1,032 in Growth Allocation Fund on October 28, 2024 and sell it today you would earn a total of 274.00 from holding Growth Allocation Fund or generate 26.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Growth Allocation Fund
Performance |
| Timeline |
| Baillie Gifford Health |
| Growth Allocation |
Baillie Gifford and Growth Allocation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Growth Allocation
The main advantage of trading using opposite Baillie Gifford and Growth Allocation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Growth Allocation 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 Growth Allocation will offset losses from the drop in Growth Allocation's long position.| Baillie Gifford vs. First Trust Specialty | Baillie Gifford vs. Davis Financial Fund | Baillie Gifford vs. Financial Industries Fund | Baillie Gifford vs. Davis Financial Fund |
| Growth Allocation vs. T Rowe Price | Growth Allocation vs. Blrc Sgy Mnp | Growth Allocation vs. Bbh Intermediate Municipal | Growth Allocation vs. Franklin Government Money |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |