Correlation Between Baillie Gifford and Jpmorgan Core
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Jpmorgan 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 Jpmorgan 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 Jpmorgan E Bond, you can compare the effects of market volatilities on Baillie Gifford and Jpmorgan 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 Jpmorgan Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Jpmorgan Core.
Diversification Opportunities for Baillie Gifford and Jpmorgan Core
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Baillie and Jpmorgan is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Jpmorgan E Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan E Bond 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 Jpmorgan Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan E Bond has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Jpmorgan Core go up and down completely randomly.
Pair Corralation between Baillie Gifford and Jpmorgan Core
If you would invest 1,018 in Jpmorgan E Bond on November 7, 2024 and sell it today you would earn a total of 5.00 from holding Jpmorgan E Bond or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Jpmorgan E Bond
Performance |
| Timeline |
| Baillie Gifford Health |
| Jpmorgan E Bond |
Baillie Gifford and Jpmorgan Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Jpmorgan Core
The main advantage of trading using opposite Baillie Gifford and Jpmorgan Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Jpmorgan 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 Jpmorgan Core will offset losses from the drop in Jpmorgan Core's long position.| Baillie Gifford vs. Gmo High Yield | Baillie Gifford vs. Guggenheim High Yield | Baillie Gifford vs. Pace High Yield | Baillie Gifford vs. Six Circles Credit |
| Jpmorgan Core vs. Pnc International Growth | Jpmorgan Core vs. Vanguard Growth And | Jpmorgan Core vs. Eip Growth And | Jpmorgan Core vs. The Hartford Growth |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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