Correlation Between Fidelity Series and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Fidelity Series 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 Fidelity Series and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Series Government and Baillie Gifford Health, you can compare the effects of market volatilities on Fidelity Series 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 Fidelity Series with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Baillie Gifford.
Diversification Opportunities for Fidelity Series and Baillie Gifford
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Baillie is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series Government and Baillie Gifford Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Health and Fidelity Series 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 Fidelity Series Government 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 Health has no effect on the direction of Fidelity Series i.e., Fidelity Series and Baillie Gifford go up and down completely randomly.
Pair Corralation between Fidelity Series and Baillie Gifford
Assuming the 90 days horizon Fidelity Series Government is expected to generate 0.1 times more return on investment than Baillie Gifford. However, Fidelity Series Government is 10.31 times less risky than Baillie Gifford. It trades about 0.21 of its potential returns per unit of risk. Baillie Gifford Health is currently generating about 0.0 per unit of risk. If you would invest 907.00 in Fidelity Series Government on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Fidelity Series Government or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Series Government vs. Baillie Gifford Health
Performance |
| Timeline |
| Fidelity Series Gove |
| Baillie Gifford Health |
Fidelity Series and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and Baillie Gifford
The main advantage of trading using opposite Fidelity Series and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series 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.| Fidelity Series vs. Elfun Government Money | Fidelity Series vs. Jpmorgan Government Bond | Fidelity Series vs. John Hancock Government | Fidelity Series vs. Long Term Government Fund |
| Baillie Gifford vs. Jhancock Disciplined Value | Baillie Gifford vs. Aqr Large Cap | Baillie Gifford vs. Fisher Large Cap | Baillie Gifford vs. Enhanced Large Pany |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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