Correlation Between Baillie Gifford and Guggenheim Managed
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Guggenheim Managed 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 Guggenheim Managed 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 Guggenheim Managed Futures, you can compare the effects of market volatilities on Baillie Gifford and Guggenheim Managed 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 Guggenheim Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Guggenheim Managed.
Diversification Opportunities for Baillie Gifford and Guggenheim Managed
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baillie and Guggenheim is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Guggenheim Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Managed 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 Guggenheim Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Managed has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Guggenheim Managed go up and down completely randomly.
Pair Corralation between Baillie Gifford and Guggenheim Managed
If you would invest 573.00 in Baillie Gifford Health on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Baillie Gifford Health or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Guggenheim Managed Futures
Performance |
| Timeline |
| Baillie Gifford Health |
| Guggenheim Managed |
Baillie Gifford and Guggenheim Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Guggenheim Managed
The main advantage of trading using opposite Baillie Gifford and Guggenheim Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Guggenheim Managed 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 Guggenheim Managed will offset losses from the drop in Guggenheim Managed's long position.| Baillie Gifford vs. Blackrock Conservative Prprdptfinstttnl | Baillie Gifford vs. Fulcrum Diversified Absolute | Baillie Gifford vs. Global Diversified Income | Baillie Gifford vs. Diversified Income Fund |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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