Correlation Between Baillie Gifford and Touchstone Large
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Touchstone 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 Touchstone 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 Touchstone Large Cap, you can compare the effects of market volatilities on Baillie Gifford and Touchstone 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 Touchstone Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Touchstone Large.
Diversification Opportunities for Baillie Gifford and Touchstone Large
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baillie and Touchstone is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Touchstone Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone 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 Touchstone Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Large Cap has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Touchstone Large go up and down completely randomly.
Pair Corralation between Baillie Gifford and Touchstone Large
If you would invest 1,926 in Touchstone Large Cap on November 3, 2024 and sell it today you would earn a total of 95.00 from holding Touchstone Large Cap or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Touchstone Large Cap
Performance |
| Timeline |
| Baillie Gifford Health |
| Touchstone Large Cap |
Baillie Gifford and Touchstone Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Touchstone Large
The main advantage of trading using opposite Baillie Gifford and Touchstone Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Touchstone 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 Touchstone Large will offset losses from the drop in Touchstone Large's long position.| Baillie Gifford vs. Ab Bond Inflation | Baillie Gifford vs. Touchstone Ultra Short | Baillie Gifford vs. Goldman Sachs Short | Baillie Gifford vs. Ab Bond Inflation |
| Touchstone Large vs. John Hancock Financial | Touchstone Large vs. Fidelity Advisor Financial | Touchstone Large vs. Angel Oak Financial | Touchstone Large vs. Icon Financial Fund |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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