Correlation Between Baillie Gifford and Ssga International
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Ssga International 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 Ssga International 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 Ssga International Stock, you can compare the effects of market volatilities on Baillie Gifford and Ssga International 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 Ssga International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Ssga International.
Diversification Opportunities for Baillie Gifford and Ssga International
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baillie and Ssga is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Ssga International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga International Stock 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 Ssga International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga International Stock has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Ssga International go up and down completely randomly.
Pair Corralation between Baillie Gifford and Ssga International
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Ssga International. In addition to that, Baillie Gifford is 2.17 times more volatile than Ssga International Stock. It trades about -0.03 of its total potential returns per unit of risk. Ssga International Stock is currently generating about 0.03 per unit of volatility. If you would invest 1,119 in Ssga International Stock on November 5, 2024 and sell it today you would earn a total of 12.00 from holding Ssga International Stock or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Ssga International Stock
Performance |
| Timeline |
| Baillie Gifford Health |
| Ssga International Stock |
Baillie Gifford and Ssga International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Ssga International
The main advantage of trading using opposite Baillie Gifford and Ssga International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Ssga International 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 Ssga International will offset losses from the drop in Ssga International'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 |
| Ssga International vs. State Street Target | Ssga International vs. State Street Target | Ssga International vs. Ssga International Stock | Ssga International vs. State Street Target |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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