Correlation Between Baillie Gifford and Mfs Utilities
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Mfs Utilities 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 Mfs Utilities 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 Mfs Utilities Fund, you can compare the effects of market volatilities on Baillie Gifford and Mfs Utilities 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 Mfs Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Mfs Utilities.
Diversification Opportunities for Baillie Gifford and Mfs Utilities
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baillie and Mfs is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Mfs Utilities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Utilities 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 Mfs Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Utilities has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Mfs Utilities go up and down completely randomly.
Pair Corralation between Baillie Gifford and Mfs Utilities
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Mfs Utilities. In addition to that, Baillie Gifford is 1.43 times more volatile than Mfs Utilities Fund. It trades about -0.01 of its total potential returns per unit of risk. Mfs Utilities Fund is currently generating about 0.02 per unit of volatility. If you would invest 2,193 in Mfs Utilities Fund on September 13, 2024 and sell it today you would earn a total of 143.00 from holding Mfs Utilities Fund or generate 6.52% 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. Mfs Utilities Fund
Performance |
| Timeline |
| Baillie Gifford Health |
| Mfs Utilities |
Baillie Gifford and Mfs Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Mfs Utilities
The main advantage of trading using opposite Baillie Gifford and Mfs Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Mfs Utilities 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 Mfs Utilities will offset losses from the drop in Mfs Utilities' 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 |
| Mfs Utilities vs. Highland Longshort Healthcare | Mfs Utilities vs. Baillie Gifford Health | Mfs Utilities vs. Alger Health Sciences | Mfs Utilities vs. Hartford Healthcare Hls |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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