Correlation Between Baillie Gifford and Deutsche Real
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Deutsche Real 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 Deutsche Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baillie Gifford International and Deutsche Real Estate, you can compare the effects of market volatilities on Baillie Gifford and Deutsche Real 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 Deutsche Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Deutsche Real.
Diversification Opportunities for Baillie Gifford and Deutsche Real
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baillie and Deutsche is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford International and Deutsche Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Real Estate 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 International are associated (or correlated) with Deutsche Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Real Estate has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Deutsche Real go up and down completely randomly.
Pair Corralation between Baillie Gifford and Deutsche Real
Assuming the 90 days horizon Baillie Gifford International is expected to generate 1.07 times more return on investment than Deutsche Real. However, Baillie Gifford is 1.07 times more volatile than Deutsche Real Estate. It trades about 0.03 of its potential returns per unit of risk. Deutsche Real Estate is currently generating about -0.02 per unit of risk. If you would invest 1,403 in Baillie Gifford International on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Baillie Gifford International or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Baillie Gifford International vs. Deutsche Real Estate
Performance |
| Timeline |
| Baillie Gifford Inte |
| Deutsche Real Estate |
Baillie Gifford and Deutsche Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Deutsche Real
The main advantage of trading using opposite Baillie Gifford and Deutsche Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Deutsche Real 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 Deutsche Real will offset losses from the drop in Deutsche Real's long position.| Baillie Gifford vs. Franklin Federal Limited Term | Baillie Gifford vs. Touchstone Ultra Short | Baillie Gifford vs. Siit Ultra Short | Baillie Gifford vs. Boston Partners Longshort |
| Deutsche Real vs. Realty Income | Deutsche Real vs. Dynex Capital | Deutsche Real vs. First Industrial Realty | Deutsche Real vs. Healthcare Realty Trust |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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