Correlation Between Baillie Gifford and Jpmorgan High
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Jpmorgan High 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 High 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 High Yield, you can compare the effects of market volatilities on Baillie Gifford and Jpmorgan High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Jpmorgan High.
Diversification Opportunities for Baillie Gifford and Jpmorgan High
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baillie and Jpmorgan is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Jpmorgan High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan High Yield has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Jpmorgan High go up and down completely randomly.
Pair Corralation between Baillie Gifford and Jpmorgan High
Assuming the 90 days horizon Baillie Gifford Health is expected to generate 13.82 times more return on investment than Jpmorgan High. However, Baillie Gifford is 13.82 times more volatile than Jpmorgan High Yield. It trades about 0.02 of its potential returns per unit of risk. Jpmorgan High Yield is currently generating about 0.12 per unit of risk. If you would invest 580.00 in Baillie Gifford Health on September 14, 2024 and sell it today you would earn a total of 4.00 from holding Baillie Gifford Health or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Jpmorgan High Yield
Performance |
| Timeline |
| Baillie Gifford Health |
| Jpmorgan High Yield |
Baillie Gifford and Jpmorgan High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Jpmorgan High
The main advantage of trading using opposite Baillie Gifford and Jpmorgan High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Jpmorgan High 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 High will offset losses from the drop in Jpmorgan High's long position.| Baillie Gifford vs. Ab Select Equity | Baillie Gifford vs. Ab Fixed Income Shares | Baillie Gifford vs. Cutler Equity | Baillie Gifford vs. Us Strategic Equity |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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