Correlation Between Baillie Gifford and Scout Small
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Scout Small 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 Scout Small 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 Scout Small Cap, you can compare the effects of market volatilities on Baillie Gifford and Scout Small 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 Scout Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Scout Small.
Diversification Opportunities for Baillie Gifford and Scout Small
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baillie and Scout is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Scout Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scout Small 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 Scout Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scout Small Cap has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Scout Small go up and down completely randomly.
Pair Corralation between Baillie Gifford and Scout Small
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Scout Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Baillie Gifford Health is 1.36 times less risky than Scout Small. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Scout Small Cap is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,071 in Scout Small Cap on November 2, 2024 and sell it today you would lose (97.00) from holding Scout Small Cap or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Scout Small Cap
Performance |
| Timeline |
| Baillie Gifford Health |
| Scout Small Cap |
Baillie Gifford and Scout Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Scout Small
The main advantage of trading using opposite Baillie Gifford and Scout Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Scout Small 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 Scout Small will offset losses from the drop in Scout Small's long position.| Baillie Gifford vs. Artisan High Income | Baillie Gifford vs. Flexible Bond Portfolio | Baillie Gifford vs. Inflation Adjusted Bond Fund | Baillie Gifford vs. Morningstar Defensive Bond |
| Scout Small vs. Aggressive Balanced Allocation | Scout Small vs. Siit High Yield | Scout Small vs. Transamerica High Yield | Scout Small vs. Artisan High Income |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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