Correlation Between Baillie Gifford and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Advent Claymore 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 Advent Claymore 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 Advent Claymore Convertible, you can compare the effects of market volatilities on Baillie Gifford and Advent Claymore 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 Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Advent Claymore.
Diversification Opportunities for Baillie Gifford and Advent Claymore
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baillie and Advent is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Advent Claymore Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Claymore Conv 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 Advent Claymore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Claymore Conv has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Advent Claymore go up and down completely randomly.
Pair Corralation between Baillie Gifford and Advent Claymore
If you would invest 1,224 in Advent Claymore Convertible on November 3, 2024 and sell it today you would earn a total of 22.00 from holding Advent Claymore Convertible or generate 1.8% 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. Advent Claymore Convertible
Performance |
| Timeline |
| Baillie Gifford Health |
| Advent Claymore Conv |
Baillie Gifford and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Advent Claymore
The main advantage of trading using opposite Baillie Gifford and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Advent Claymore 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 Advent Claymore will offset losses from the drop in Advent Claymore'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 |
| Advent Claymore vs. Tiaa Cref Large Cap Value | Advent Claymore vs. Fisher Large Cap | Advent Claymore vs. Qs Large Cap | Advent Claymore vs. Guidemark Large Cap |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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