Correlation Between Baillie Gifford and Oakmark International
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Oakmark International 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 Oakmark International 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 Oakmark International Small, you can compare the effects of market volatilities on Baillie Gifford and Oakmark International 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 Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Oakmark International.
Diversification Opportunities for Baillie Gifford and Oakmark International
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Baillie and Oakmark is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Oakmark International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International 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 Oakmark International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark International has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Oakmark International go up and down completely randomly.
Pair Corralation between Baillie Gifford and Oakmark International
Assuming the 90 days horizon Baillie Gifford Health is expected to generate 1.64 times more return on investment than Oakmark International. However, Baillie Gifford is 1.64 times more volatile than Oakmark International Small. It trades about -0.04 of its potential returns per unit of risk. Oakmark International Small is currently generating about -0.12 per unit of risk. If you would invest 591.00 in Baillie Gifford Health on September 3, 2024 and sell it today you would lose (8.00) from holding Baillie Gifford Health or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Oakmark International Small
Performance |
| Timeline |
| Baillie Gifford Health |
| Oakmark International |
Baillie Gifford and Oakmark International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Oakmark International
The main advantage of trading using opposite Baillie Gifford and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Oakmark International 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 Oakmark International will offset losses from the drop in Oakmark International's long position.| Baillie Gifford vs. Legg Mason Partners | Baillie Gifford vs. T Rowe Price | Baillie Gifford vs. Black Oak Emerging | Baillie Gifford vs. Templeton Emerging Markets |
| Oakmark International vs. The Emerging Markets | Oakmark International vs. Nasdaq 100 2x Strategy | Oakmark International vs. Barings Emerging Markets | Oakmark International vs. Artisan 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |