Correlation Between Baillie Gifford and Great-west Core
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Great-west Core 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 Great-west Core 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 Great West E Bond, you can compare the effects of market volatilities on Baillie Gifford and Great-west Core 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 Great-west Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Great-west Core.
Diversification Opportunities for Baillie Gifford and Great-west Core
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Baillie and Great-west is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Great West E Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great-west Core 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 Great-west Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great-west Core has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Great-west Core go up and down completely randomly.
Pair Corralation between Baillie Gifford and Great-west Core
If you would invest 824.00 in Great West E Bond on November 30, 2024 and sell it today you would earn a total of 22.00 from holding Great West E Bond or generate 2.67% 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. Great West E Bond
Performance |
| Timeline |
| Baillie Gifford Health |
| Great-west Core |
Baillie Gifford and Great-west Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Great-west Core
The main advantage of trading using opposite Baillie Gifford and Great-west Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Great-west Core 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 Great-west Core will offset losses from the drop in Great-west Core's long position.| Baillie Gifford vs. Dreyfusstandish Global Fixed | Baillie Gifford vs. Dodge International Stock | Baillie Gifford vs. Guidemark E Fixed | Baillie Gifford vs. T Rowe Price |
| Great-west Core vs. Morningstar Defensive Bond | Great-west Core vs. Calvert Bond Portfolio | Great-west Core vs. Ab Bond Inflation | Great-west Core vs. Ambrus Core Bond |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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