Correlation Between Baillie Gifford and Ivy Asset
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Ivy Asset 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 Ivy Asset 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 Ivy Asset Strategy, you can compare the effects of market volatilities on Baillie Gifford and Ivy Asset 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 Ivy Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Ivy Asset.
Diversification Opportunities for Baillie Gifford and Ivy Asset
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Baillie and Ivy is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Ivy Asset Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Asset Strategy 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 Ivy Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Asset Strategy has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Ivy Asset go up and down completely randomly.
Pair Corralation between Baillie Gifford and Ivy Asset
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Ivy Asset. In addition to that, Baillie Gifford is 1.37 times more volatile than Ivy Asset Strategy. It trades about -0.02 of its total potential returns per unit of risk. Ivy Asset Strategy is currently generating about 0.03 per unit of volatility. If you would invest 2,045 in Ivy Asset Strategy on September 3, 2024 and sell it today you would earn a total of 266.00 from holding Ivy Asset Strategy or generate 13.01% 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. Ivy Asset Strategy
Performance |
| Timeline |
| Baillie Gifford Health |
| Ivy Asset Strategy |
Baillie Gifford and Ivy Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Ivy Asset
The main advantage of trading using opposite Baillie Gifford and Ivy Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Ivy Asset 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 Ivy Asset will offset losses from the drop in Ivy Asset's long position.| Baillie Gifford vs. Legg Mason Partners | Baillie Gifford vs. T Rowe Price | Baillie Gifford vs. Black Oak Emerging | Baillie Gifford vs. Templeton Emerging Markets |
| Ivy Asset vs. Baillie Gifford Health | Ivy Asset vs. Invesco Global Health | Ivy Asset vs. Alphacentric Lifesci Healthcare | Ivy Asset vs. Prudential Health Sciences |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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