Correlation Between Baillie Gifford and American Independence
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and American Independence 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 American Independence 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 American Independence Kansas, you can compare the effects of market volatilities on Baillie Gifford and American Independence 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 American Independence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and American Independence.
Diversification Opportunities for Baillie Gifford and American Independence
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baillie and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and American Independence Kansas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Independence 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 American Independence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Independence has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and American Independence go up and down completely randomly.
Pair Corralation between Baillie Gifford and American Independence
If you would invest 547.00 in Baillie Gifford Health on September 15, 2024 and sell it today you would earn a total of 29.00 from holding Baillie Gifford Health or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. American Independence Kansas
Performance |
| Timeline |
| Baillie Gifford Health |
| American Independence |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baillie Gifford and American Independence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and American Independence
The main advantage of trading using opposite Baillie Gifford and American Independence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, American Independence 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 American Independence will offset losses from the drop in American Independence'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 |
| American Independence vs. Lord Abbett Health | American Independence vs. Baillie Gifford Health | American Independence vs. Baron Health Care | American Independence vs. Health Biotchnology Portfolio |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges |