Correlation Between Boston Partners and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Boston Partners 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 Boston Partners and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Longshort and Baillie Gifford Global, you can compare the effects of market volatilities on Boston Partners 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 Boston Partners with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Baillie Gifford.
Diversification Opportunities for Boston Partners and Baillie Gifford
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boston and Baillie is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Longshort and Baillie Gifford Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Global and Boston Partners 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 Boston Partners Longshort 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 Global has no effect on the direction of Boston Partners i.e., Boston Partners and Baillie Gifford go up and down completely randomly.
Pair Corralation between Boston Partners and Baillie Gifford
Assuming the 90 days horizon Boston Partners Longshort is expected to under-perform the Baillie Gifford. But the mutual fund apears to be less risky and, when comparing its historical volatility, Boston Partners Longshort is 1.82 times less risky than Baillie Gifford. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Baillie Gifford Global is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,989 in Baillie Gifford Global on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Baillie Gifford Global or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners Longshort vs. Baillie Gifford Global
Performance |
| Timeline |
| Boston Partners Longshort |
| Baillie Gifford Global |
Boston Partners and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Baillie Gifford
The main advantage of trading using opposite Boston Partners and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners 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.| Boston Partners vs. Aqr Managed Futures | Boston Partners vs. Neuberger Berman Long | Boston Partners vs. Asg Managed Futures | Boston Partners vs. Marketfield Fund Marketfield |
| Baillie Gifford vs. Touchstone Ultra Short | Baillie Gifford vs. Astor Longshort Fund | Baillie Gifford vs. Boston Partners Longshort | Baillie Gifford vs. Siit Ultra Short |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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