Correlation Between Baillie Gifford and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Baillie Gifford 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 Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baillie Gifford Eafe and Baillie Gifford Discovery, you can compare the effects of market volatilities on Baillie Gifford and Baillie Gifford 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 Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Baillie Gifford.
Diversification Opportunities for Baillie Gifford and Baillie Gifford
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baillie and Baillie is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Eafe and Baillie Gifford Discovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Discovery 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 Eafe are associated (or correlated) with Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford Discovery has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Baillie Gifford go up and down completely randomly.
Pair Corralation between Baillie Gifford and Baillie Gifford
Assuming the 90 days horizon Baillie Gifford Eafe is expected to under-perform the Baillie Gifford. But the mutual fund apears to be less risky and, when comparing its historical volatility, Baillie Gifford Eafe is 1.91 times less risky than Baillie Gifford. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Baillie Gifford Discovery is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 556.00 in Baillie Gifford Discovery on August 31, 2024 and sell it today you would earn a total of 54.00 from holding Baillie Gifford Discovery or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Eafe vs. Baillie Gifford Discovery
Performance |
| Timeline |
| Baillie Gifford Eafe |
| Baillie Gifford Discovery |
Baillie Gifford and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Baillie Gifford
The main advantage of trading using opposite Baillie Gifford and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.| Baillie Gifford vs. Vanguard Small Cap Growth | Baillie Gifford vs. Commonwealth Global Fund | Baillie Gifford vs. Ab Value Fund | Baillie Gifford vs. Bbh Partner Fund |
| Baillie Gifford vs. Tax Managed Large Cap | Baillie Gifford vs. Transamerica Large Cap | Baillie Gifford vs. American Mutual Fund | Baillie Gifford vs. Dunham 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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