Correlation Between Baillie Gifford and Short-term Government
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Short-term Government 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-term Government 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 Term Government Fund, you can compare the effects of market volatilities on Baillie Gifford and Short-term Government 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-term Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Short-term Government.
Diversification Opportunities for Baillie Gifford and Short-term Government
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baillie and Short-term is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Short Term Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Term Government 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-term Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Term Government has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Short-term Government go up and down completely randomly.
Pair Corralation between Baillie Gifford and Short-term Government
If you would invest 906.00 in Short Term Government Fund on November 3, 2024 and sell it today you would earn a total of 1.00 from holding Short Term Government Fund or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Baillie Gifford Health vs. Short Term Government Fund
Performance |
| Timeline |
| Baillie Gifford Health |
| Short Term Government |
Baillie Gifford and Short-term Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Short-term Government
The main advantage of trading using opposite Baillie Gifford and Short-term Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Short-term Government 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-term Government will offset losses from the drop in Short-term Government's long position.| Baillie Gifford vs. Rbc Bluebay Global | Baillie Gifford vs. Aqr Risk Parity | Baillie Gifford vs. Needham Aggressive Growth | Baillie Gifford vs. Calamos High Income |
| Short-term Government vs. Gugg Actv Invmt | Short-term Government vs. Gmo High Yield | Short-term Government vs. Rbc Bluebay Global | Short-term Government vs. Barings High Yield |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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