Correlation Between Baillie Gifford and Aqr Sustainable
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Aqr Sustainable 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 Aqr Sustainable 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 Aqr Sustainable Long Short, you can compare the effects of market volatilities on Baillie Gifford and Aqr Sustainable 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 Aqr Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Aqr Sustainable.
Diversification Opportunities for Baillie Gifford and Aqr Sustainable
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baillie and AQR is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Eafe and Aqr Sustainable Long Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Sustainable Long 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 Aqr Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Sustainable Long has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Aqr Sustainable go up and down completely randomly.
Pair Corralation between Baillie Gifford and Aqr Sustainable
Assuming the 90 days horizon Baillie Gifford is expected to generate 3.49 times less return on investment than Aqr Sustainable. But when comparing it to its historical volatility, Baillie Gifford Eafe is 2.02 times less risky than Aqr Sustainable. It trades about 0.04 of its potential returns per unit of risk. Aqr Sustainable Long Short is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,142 in Aqr Sustainable Long Short on September 2, 2024 and sell it today you would earn a total of 361.00 from holding Aqr Sustainable Long Short or generate 31.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Eafe vs. Aqr Sustainable Long Short
Performance |
| Timeline |
| Baillie Gifford Eafe |
| Aqr Sustainable Long |
Baillie Gifford and Aqr Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Aqr Sustainable
The main advantage of trading using opposite Baillie Gifford and Aqr Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Aqr Sustainable 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 Aqr Sustainable will offset losses from the drop in Aqr Sustainable's long position.| Baillie Gifford vs. Aqr Sustainable Long Short | Baillie Gifford vs. Aqr Long Short Equity | Baillie Gifford vs. Origin Emerging Markets | Baillie Gifford vs. Vanguard Developed Markets |
| Aqr Sustainable vs. Pimco Funds | Aqr Sustainable vs. Prudential Government Money | Aqr Sustainable vs. Aim Investment Secs | Aqr Sustainable vs. Dreyfus Institutional Reserves |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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