Correlation Between Baillie Gifford and Clearbridge Large
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Clearbridge Large 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 Clearbridge Large 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 Clearbridge Large Cap, you can compare the effects of market volatilities on Baillie Gifford and Clearbridge Large 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 Clearbridge Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Clearbridge Large.
Diversification Opportunities for Baillie Gifford and Clearbridge Large
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baillie and Clearbridge is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Clearbridge Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Large Cap 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 Clearbridge Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Large Cap has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Clearbridge Large go up and down completely randomly.
Pair Corralation between Baillie Gifford and Clearbridge Large
Assuming the 90 days horizon Baillie Gifford Health is expected to generate 1.98 times more return on investment than Clearbridge Large. However, Baillie Gifford is 1.98 times more volatile than Clearbridge Large Cap. It trades about -0.01 of its potential returns per unit of risk. Clearbridge Large Cap is currently generating about -0.1 per unit of risk. If you would invest 590.00 in Baillie Gifford Health on September 13, 2024 and sell it today you would lose (6.00) from holding Baillie Gifford Health or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Baillie Gifford Health vs. Clearbridge Large Cap
Performance |
| Timeline |
| Baillie Gifford Health |
| Clearbridge Large Cap |
Baillie Gifford and Clearbridge Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Clearbridge Large
The main advantage of trading using opposite Baillie Gifford and Clearbridge Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Clearbridge Large 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 Clearbridge Large will offset losses from the drop in Clearbridge Large'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 |
| Clearbridge Large vs. L Abbett Growth | Clearbridge Large vs. Small Pany Growth | Clearbridge Large vs. Artisan Small Cap | Clearbridge Large vs. Rational Defensive 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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