Correlation Between Baillie Gifford and William Blair
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and William Blair 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 William Blair 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 William Blair Large, you can compare the effects of market volatilities on Baillie Gifford and William Blair 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 William Blair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and William Blair.
Diversification Opportunities for Baillie Gifford and William Blair
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baillie and William is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and William Blair Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on William Blair Large 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 William Blair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of William Blair Large has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and William Blair go up and down completely randomly.
Pair Corralation between Baillie Gifford and William Blair
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the William Blair. In addition to that, Baillie Gifford is 1.91 times more volatile than William Blair Large. It trades about -0.02 of its total potential returns per unit of risk. William Blair Large is currently generating about 0.12 per unit of volatility. If you would invest 3,108 in William Blair Large on September 13, 2024 and sell it today you would earn a total of 164.00 from holding William Blair Large or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Baillie Gifford Health vs. William Blair Large
Performance |
| Timeline |
| Baillie Gifford Health |
| William Blair Large |
Baillie Gifford and William Blair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and William Blair
The main advantage of trading using opposite Baillie Gifford and William Blair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, William Blair 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 William Blair will offset losses from the drop in William Blair's long position.| Baillie Gifford vs. Jhancock Disciplined Value | Baillie Gifford vs. Aqr Large Cap | Baillie Gifford vs. Fisher Large Cap | Baillie Gifford vs. Enhanced Large Pany |
| William Blair vs. Eventide Healthcare Life | William Blair vs. Health Biotchnology Portfolio | William Blair vs. Baillie Gifford Health | William Blair vs. Delaware Healthcare Fund |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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