Correlation Between Baillie Gifford and Ivy High
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Ivy High 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 High 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 High Income, you can compare the effects of market volatilities on Baillie Gifford and Ivy High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Ivy High.
Diversification Opportunities for Baillie Gifford and Ivy High
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baillie and Ivy is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Ivy High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy High Income 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy High Income has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Ivy High go up and down completely randomly.
Pair Corralation between Baillie Gifford and Ivy High
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Ivy High. In addition to that, Baillie Gifford is 3.18 times more volatile than Ivy High Income. It trades about -0.02 of its total potential returns per unit of risk. Ivy High Income is currently generating about 0.09 per unit of volatility. If you would invest 516.00 in Ivy High Income on September 4, 2024 and sell it today you would earn a total of 96.00 from holding Ivy High Income or generate 18.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Ivy High Income
Performance |
| Timeline |
| Baillie Gifford Health |
| Ivy High Income |
Baillie Gifford and Ivy High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Ivy High
The main advantage of trading using opposite Baillie Gifford and Ivy High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Ivy High 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 High will offset losses from the drop in Ivy High's long position.| Baillie Gifford vs. T Rowe Price | Baillie Gifford vs. T Rowe Price | Baillie Gifford vs. Cs 607 Tax | Baillie Gifford vs. Franklin High Yield |
| Ivy High vs. Ivy Large Cap | Ivy High vs. Ivy Small Cap | Ivy High vs. Ivy High Income | Ivy High vs. Ivy Apollo Multi Asset |
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 CEOs Directory module to screen CEOs from public companies around the world.
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