Correlation Between Calvert Global and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Calvert Global 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 Calvert Global and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Baillie Gifford Eafe, you can compare the effects of market volatilities on Calvert Global 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 Calvert Global with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Baillie Gifford.
Diversification Opportunities for Calvert Global and Baillie Gifford
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Baillie is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy 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 Calvert Global 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 Calvert Global Energy 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 Calvert Global i.e., Calvert Global and Baillie Gifford go up and down completely randomly.
Pair Corralation between Calvert Global and Baillie Gifford
Assuming the 90 days horizon Calvert Global Energy is expected to under-perform the Baillie Gifford. But the mutual fund apears to be less risky and, when comparing its historical volatility, Calvert Global Energy is 1.25 times less risky than Baillie Gifford. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Baillie Gifford Eafe is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,567 in Baillie Gifford Eafe on September 12, 2024 and sell it today you would lose (8.00) from holding Baillie Gifford Eafe or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. Baillie Gifford Eafe
Performance |
| Timeline |
| Calvert Global Energy |
| Baillie Gifford Eafe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Calvert Global and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Baillie Gifford
The main advantage of trading using opposite Calvert Global and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global 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.| Calvert Global vs. Ab Global Risk | Calvert Global vs. Lgm Risk Managed | Calvert Global vs. Western Asset High | Calvert Global vs. Ab Global Risk |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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