Correlation Between Baillie Gifford and Siit Large
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Siit 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 Siit 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 Siit Large Cap, you can compare the effects of market volatilities on Baillie Gifford and Siit 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 Siit Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Siit Large.
Diversification Opportunities for Baillie Gifford and Siit Large
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baillie and Siit is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Siit Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit 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 Siit Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Large Cap has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Siit Large go up and down completely randomly.
Pair Corralation between Baillie Gifford and Siit Large
Assuming the 90 days horizon Baillie Gifford is expected to generate 2.94 times less return on investment than Siit Large. In addition to that, Baillie Gifford is 1.76 times more volatile than Siit Large Cap. It trades about 0.04 of its total potential returns per unit of risk. Siit Large Cap is currently generating about 0.18 per unit of volatility. If you would invest 899.00 in Siit Large Cap on August 26, 2024 and sell it today you would earn a total of 387.00 from holding Siit Large Cap or generate 43.05% 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. Siit Large Cap
Performance |
| Timeline |
| Baillie Gifford Health |
| Siit Large Cap |
Baillie Gifford and Siit Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Siit Large
The main advantage of trading using opposite Baillie Gifford and Siit Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Siit 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 Siit Large will offset losses from the drop in Siit Large's long position.| Baillie Gifford vs. Jennison Natural Resources | Baillie Gifford vs. Oil Gas Ultrasector | Baillie Gifford vs. Icon Natural Resources | Baillie Gifford vs. Energy Basic Materials |
| Siit Large vs. Baillie Gifford Health | Siit Large vs. Lord Abbett Health | Siit Large vs. Eventide Healthcare Life | Siit Large vs. Hartford Healthcare Hls |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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