Correlation Between Baillie Gifford and Invesco American
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Invesco American 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 Invesco American 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 Invesco American Value, you can compare the effects of market volatilities on Baillie Gifford and Invesco American 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 Invesco American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Invesco American.
Diversification Opportunities for Baillie Gifford and Invesco American
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baillie and Invesco is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Invesco American Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco American Value 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 Invesco American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco American Value has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Invesco American go up and down completely randomly.
Pair Corralation between Baillie Gifford and Invesco American
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Invesco American. But the mutual fund apears to be less risky and, when comparing its historical volatility, Baillie Gifford Health is 1.02 times less risky than Invesco American. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Invesco American Value is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,927 in Invesco American Value on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Invesco American Value or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.1% |
| Values | Daily Returns |
Baillie Gifford Health vs. Invesco American Value
Performance |
| Timeline |
| Baillie Gifford Health |
| Invesco American Value |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baillie Gifford and Invesco American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Invesco American
The main advantage of trading using opposite Baillie Gifford and Invesco American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Invesco American 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 Invesco American will offset losses from the drop in Invesco American's long position.| Baillie Gifford vs. Lord Abbett Diversified | Baillie Gifford vs. Federated Hermes Conservative | Baillie Gifford vs. Western Asset Diversified | Baillie Gifford vs. Global Diversified Income |
| Invesco American vs. Barings Emerging Markets | Invesco American vs. T Rowe Price | Invesco American vs. Kinetics Market Opportunities | Invesco American vs. Rbc Emerging 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |