Correlation Between Baillie Gifford and Mainstay New
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Mainstay New 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 Mainstay New 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 Mainstay New York, you can compare the effects of market volatilities on Baillie Gifford and Mainstay New 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 Mainstay New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Mainstay New.
Diversification Opportunities for Baillie Gifford and Mainstay New
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baillie and Mainstay is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Mainstay New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay New York 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 Mainstay New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay New York has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Mainstay New go up and down completely randomly.
Pair Corralation between Baillie Gifford and Mainstay New
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Mainstay New. In addition to that, Baillie Gifford is 17.33 times more volatile than Mainstay New York. It trades about 0.0 of its total potential returns per unit of risk. Mainstay New York is currently generating about 0.43 per unit of volatility. If you would invest 966.00 in Mainstay New York on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Mainstay New York or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Mainstay New York
Performance |
| Timeline |
| Baillie Gifford Health |
| Mainstay New York |
Baillie Gifford and Mainstay New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Mainstay New
The main advantage of trading using opposite Baillie Gifford and Mainstay New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Mainstay New 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 Mainstay New will offset losses from the drop in Mainstay New'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 |
| Mainstay New vs. Mainstay High Yield | Mainstay New vs. Mainstay Tax Free | Mainstay New vs. Mainstay Income Builder | Mainstay New vs. Mainstay Large Cap |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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