Correlation Between Baillie Gifford and Short Precious
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Short Precious 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 Short Precious 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 Short Precious Metals, you can compare the effects of market volatilities on Baillie Gifford and Short Precious 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 Short Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Short Precious.
Diversification Opportunities for Baillie Gifford and Short Precious
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baillie and Short is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Short Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Precious Metals 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 Short Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Precious Metals has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Short Precious go up and down completely randomly.
Pair Corralation between Baillie Gifford and Short Precious
Assuming the 90 days horizon Baillie Gifford Health is expected to generate 0.88 times more return on investment than Short Precious. However, Baillie Gifford Health is 1.13 times less risky than Short Precious. It trades about -0.01 of its potential returns per unit of risk. Short Precious Metals is currently generating about -0.03 per unit of risk. If you would invest 580.00 in Baillie Gifford Health on October 28, 2024 and sell it today you would lose (7.00) from holding Baillie Gifford Health or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Short Precious Metals
Performance |
| Timeline |
| Baillie Gifford Health |
| Short Precious Metals |
Baillie Gifford and Short Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Short Precious
The main advantage of trading using opposite Baillie Gifford and Short Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Short Precious 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 Short Precious will offset losses from the drop in Short Precious' long position.| Baillie Gifford vs. First Trust Specialty | Baillie Gifford vs. Davis Financial Fund | Baillie Gifford vs. Financial Industries Fund | Baillie Gifford vs. Davis Financial Fund |
| Short Precious vs. Red Oak Technology | Short Precious vs. Blackrock Science Technology | Short Precious vs. Pgim Jennison Technology | Short Precious vs. Vanguard Information Technology |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |