Correlation Between Goldman Sachs and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs 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 Goldman Sachs and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Clean and Baillie Gifford Eafe, you can compare the effects of market volatilities on Goldman Sachs 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 Goldman Sachs with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Baillie Gifford.
Diversification Opportunities for Goldman Sachs and Baillie Gifford
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goldman and Baillie is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Clean 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 Goldman Sachs 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 Goldman Sachs Clean 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 Goldman Sachs i.e., Goldman Sachs and Baillie Gifford go up and down completely randomly.
Pair Corralation between Goldman Sachs and Baillie Gifford
Assuming the 90 days horizon Goldman Sachs Clean is expected to under-perform the Baillie Gifford. But the mutual fund apears to be less risky and, when comparing its historical volatility, Goldman Sachs Clean is 1.73 times less risky than Baillie Gifford. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Baillie Gifford Eafe is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,509 in Baillie Gifford Eafe on September 14, 2024 and sell it today you would earn a total of 35.00 from holding Baillie Gifford Eafe or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Clean vs. Baillie Gifford Eafe
Performance |
| Timeline |
| Goldman Sachs Clean |
| Baillie Gifford Eafe |
Goldman Sachs and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Baillie Gifford
The main advantage of trading using opposite Goldman Sachs and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs 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.| Goldman Sachs vs. Mid Cap 15x Strategy | Goldman Sachs vs. Investec Emerging Markets | Goldman Sachs vs. Nasdaq 100 2x Strategy | Goldman Sachs vs. Vy Jpmorgan Emerging |
| Baillie Gifford vs. Great West Goldman Sachs | Baillie Gifford vs. Short Precious Metals | Baillie Gifford vs. Goldman Sachs Clean | Baillie Gifford vs. Oppenheimer Gold Special |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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