Correlation Between Baillie Gifford and Transamerica Capital
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Transamerica Capital 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 Transamerica Capital 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 Transamerica Capital Growth, you can compare the effects of market volatilities on Baillie Gifford and Transamerica Capital 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 Transamerica Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Transamerica Capital.
Diversification Opportunities for Baillie Gifford and Transamerica Capital
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Baillie and Transamerica is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Transamerica Capital Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica Capital 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 Transamerica Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica Capital has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Transamerica Capital go up and down completely randomly.
Pair Corralation between Baillie Gifford and Transamerica Capital
If you would invest 3,732 in Transamerica Capital Growth on November 8, 2024 and sell it today you would earn a total of 313.00 from holding Transamerica Capital Growth or generate 8.39% 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. Transamerica Capital Growth
Performance |
| Timeline |
| Baillie Gifford Health |
| Transamerica Capital |
Baillie Gifford and Transamerica Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Transamerica Capital
The main advantage of trading using opposite Baillie Gifford and Transamerica Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Transamerica Capital 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 Transamerica Capital will offset losses from the drop in Transamerica Capital's long position.| Baillie Gifford vs. Ishares Municipal Bond | Baillie Gifford vs. Lind Capital Partners | Baillie Gifford vs. Bbh Intermediate Municipal | Baillie Gifford vs. Morningstar Municipal Bond |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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