Correlation Between Allianzgi Technology and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Allianzgi Technology 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 Allianzgi Technology and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Technology Fund and Baillie Gifford International, you can compare the effects of market volatilities on Allianzgi Technology 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 Allianzgi Technology with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Technology and Baillie Gifford.
Diversification Opportunities for Allianzgi Technology and Baillie Gifford
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianzgi and Baillie is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Technology Fund and Baillie Gifford International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Inte and Allianzgi Technology 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 Allianzgi Technology 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 Inte has no effect on the direction of Allianzgi Technology i.e., Allianzgi Technology and Baillie Gifford go up and down completely randomly.
Pair Corralation between Allianzgi Technology and Baillie Gifford
Assuming the 90 days horizon Allianzgi Technology Fund is expected to generate 1.45 times more return on investment than Baillie Gifford. However, Allianzgi Technology is 1.45 times more volatile than Baillie Gifford International. It trades about 0.25 of its potential returns per unit of risk. Baillie Gifford International is currently generating about 0.08 per unit of risk. If you would invest 8,397 in Allianzgi Technology Fund on September 4, 2024 and sell it today you would earn a total of 500.00 from holding Allianzgi Technology Fund or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Technology Fund vs. Baillie Gifford International
Performance |
| Timeline |
| Allianzgi Technology |
| Baillie Gifford Inte |
Allianzgi Technology and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Technology and Baillie Gifford
The main advantage of trading using opposite Allianzgi Technology and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Technology 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.| Allianzgi Technology vs. Goldman Sachs Strategic | Allianzgi Technology vs. Red Oak Technology | Allianzgi Technology vs. Kinetics Internet Fund | Allianzgi Technology vs. Tomorrows Scholar College |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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