Correlation Between Baillie Gifford and Columbia Small
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Columbia Small 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 Columbia Small 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 Columbia Small Cap, you can compare the effects of market volatilities on Baillie Gifford and Columbia Small 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 Columbia Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Columbia Small.
Diversification Opportunities for Baillie Gifford and Columbia Small
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baillie and Columbia is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Columbia Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Small Cap 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 Columbia Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Small Cap has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Columbia Small go up and down completely randomly.
Pair Corralation between Baillie Gifford and Columbia Small
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Columbia Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Baillie Gifford Health is 1.11 times less risky than Columbia Small. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Columbia Small Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,417 in Columbia Small Cap on September 5, 2024 and sell it today you would earn a total of 339.00 from holding Columbia Small Cap or generate 14.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Baillie Gifford Health vs. Columbia Small Cap
Performance |
| Timeline |
| Baillie Gifford Health |
| Columbia Small Cap |
Baillie Gifford and Columbia Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Columbia Small
The main advantage of trading using opposite Baillie Gifford and Columbia Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Columbia Small 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 Columbia Small will offset losses from the drop in Columbia Small's long position.| Baillie Gifford vs. Fidelity Series Government | Baillie Gifford vs. Blackrock Government Bond | Baillie Gifford vs. Us Government Securities | Baillie Gifford vs. Ab Government Exchange |
| Columbia Small vs. Calamos Dynamic Convertible | Columbia Small vs. Allianzgi Convertible Income | Columbia Small vs. Fidelity Sai Convertible | Columbia Small vs. Rationalpier 88 Convertible |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |