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 International and Baillie Gifford Eafe, 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
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Baillie and Baillie is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford International and Baillie Gifford Eafe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Eafe 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 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 Eafe 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 is expected to generate 1.9 times less return on investment than Baillie Gifford. But when comparing it to its historical volatility, Baillie Gifford International is 1.03 times less risky than Baillie Gifford. It trades about 0.02 of its potential returns per unit of risk. Baillie Gifford Eafe is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,399 in Baillie Gifford Eafe on August 31, 2024 and sell it today you would earn a total of 11.00 from holding Baillie Gifford Eafe or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford International vs. Baillie Gifford Eafe
Performance |
| Timeline |
| Baillie Gifford Inte |
| Baillie Gifford Eafe |
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. Europacific Growth Fund | Baillie Gifford vs. Europacific Growth Fund | Baillie Gifford vs. HUMANA INC | Baillie Gifford vs. Aquagold International |
| Baillie Gifford vs. Harbor Diversified International | Baillie Gifford vs. Pnc Emerging Markets | Baillie Gifford vs. Siit Emerging Markets | Baillie Gifford vs. Transamerica Emerging Markets |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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