Correlation Between Baillie Gifford and Oppenheimer Developing
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Oppenheimer Developing 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 Oppenheimer Developing 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 Oppenheimer Developing Markets, you can compare the effects of market volatilities on Baillie Gifford and Oppenheimer Developing 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 Oppenheimer Developing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Oppenheimer Developing.
Diversification Opportunities for Baillie Gifford and Oppenheimer Developing
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baillie and Oppenheimer is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Oppenheimer Developing Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Developing 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 Oppenheimer Developing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Developing has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Oppenheimer Developing go up and down completely randomly.
Pair Corralation between Baillie Gifford and Oppenheimer Developing
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Oppenheimer Developing. In addition to that, Baillie Gifford is 1.48 times more volatile than Oppenheimer Developing Markets. It trades about -0.03 of its total potential returns per unit of risk. Oppenheimer Developing Markets is currently generating about 0.01 per unit of volatility. If you would invest 3,699 in Oppenheimer Developing Markets on September 4, 2024 and sell it today you would earn a total of 69.00 from holding Oppenheimer Developing Markets or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Baillie Gifford Health vs. Oppenheimer Developing Markets
Performance |
| Timeline |
| Baillie Gifford Health |
| Oppenheimer Developing |
Baillie Gifford and Oppenheimer Developing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Oppenheimer Developing
The main advantage of trading using opposite Baillie Gifford and Oppenheimer Developing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Oppenheimer Developing 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 Oppenheimer Developing will offset losses from the drop in Oppenheimer Developing's long position.| Baillie Gifford vs. T Rowe Price | Baillie Gifford vs. T Rowe Price | Baillie Gifford vs. Cs 607 Tax | Baillie Gifford vs. Franklin High Yield |
| Oppenheimer Developing vs. Lord Abbett High | Oppenheimer Developing vs. Artisan High Income | Oppenheimer Developing vs. Prudential High Yield | Oppenheimer Developing vs. Calvert High Yield |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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