Correlation Between Baillie Gifford and Aqr Style
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Aqr Style 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 Aqr Style 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 Aqr Style Premia, you can compare the effects of market volatilities on Baillie Gifford and Aqr Style 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 Aqr Style. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Aqr Style.
Diversification Opportunities for Baillie Gifford and Aqr Style
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baillie and Aqr is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Aqr Style Premia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Style Premia 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 Aqr Style. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Style Premia has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Aqr Style go up and down completely randomly.
Pair Corralation between Baillie Gifford and Aqr Style
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Aqr Style. But the mutual fund apears to be less risky and, when comparing its historical volatility, Baillie Gifford Health is 1.14 times less risky than Aqr Style. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Aqr Style Premia is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 619.00 in Aqr Style Premia on September 14, 2024 and sell it today you would earn a total of 199.00 from holding Aqr Style Premia or generate 32.15% 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. Aqr Style Premia
Performance |
| Timeline |
| Baillie Gifford Health |
| Aqr Style Premia |
Baillie Gifford and Aqr Style Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Aqr Style
The main advantage of trading using opposite Baillie Gifford and Aqr Style positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Aqr Style 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 Aqr Style will offset losses from the drop in Aqr Style'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 |
| Aqr Style vs. Artisan Small Cap | Aqr Style vs. Vy Baron Growth | Aqr Style vs. Rational Defensive Growth | Aqr Style vs. Mid Cap 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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