Correlation Between Chase Growth and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Chase Growth 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 Chase Growth and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chase Growth Fund and Baillie Gifford Discovery, you can compare the effects of market volatilities on Chase Growth 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 Chase Growth with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Baillie Gifford.
Diversification Opportunities for Chase Growth and Baillie Gifford
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chase and Baillie is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund 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 Chase Growth 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 Chase Growth Fund 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 Chase Growth i.e., Chase Growth and Baillie Gifford go up and down completely randomly.
Pair Corralation between Chase Growth and Baillie Gifford
Assuming the 90 days horizon Chase Growth Fund is expected to under-perform the Baillie Gifford. In addition to that, Chase Growth is 2.17 times more volatile than Baillie Gifford Discovery. It trades about -0.19 of its total potential returns per unit of risk. Baillie Gifford Discovery is currently generating about -0.12 per unit of volatility. If you would invest 600.00 in Baillie Gifford Discovery on September 14, 2024 and sell it today you would lose (28.00) from holding Baillie Gifford Discovery or give up 4.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. Baillie Gifford Discovery
Performance |
| Timeline |
| Chase Growth |
| Baillie Gifford Discovery |
Chase Growth and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Baillie Gifford
The main advantage of trading using opposite Chase Growth and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth 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.| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Cambiar Opportunity Fund |
| Baillie Gifford vs. American Mutual Fund | Baillie Gifford vs. M Large Cap | Baillie Gifford vs. Qs Large Cap | 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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