Correlation Between Jhancock Diversified and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified 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 Jhancock Diversified and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Diversified Macro and Baillie Gifford Health, you can compare the effects of market volatilities on Jhancock Diversified 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 Jhancock Diversified with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Baillie Gifford.
Diversification Opportunities for Jhancock Diversified and Baillie Gifford
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jhancock and Baillie is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro 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 Jhancock Diversified 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 Jhancock Diversified Macro 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 Jhancock Diversified i.e., Jhancock Diversified and Baillie Gifford go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Baillie Gifford
Assuming the 90 days horizon Jhancock Diversified Macro is expected to generate 3.81 times more return on investment than Baillie Gifford. However, Jhancock Diversified is 3.81 times more volatile than Baillie Gifford Health. It trades about 0.11 of its potential returns per unit of risk. Baillie Gifford Health is currently generating about -0.31 per unit of risk. If you would invest 910.00 in Jhancock Diversified Macro on October 14, 2024 and sell it today you would earn a total of 6.00 from holding Jhancock Diversified Macro or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Baillie Gifford Health
Performance |
| Timeline |
| Jhancock Diversified |
| Baillie Gifford Health |
Jhancock Diversified and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Baillie Gifford
The main advantage of trading using opposite Jhancock Diversified and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified 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.| Jhancock Diversified vs. Rbc Short Duration | Jhancock Diversified vs. Aqr Sustainable Long Short | Jhancock Diversified vs. Touchstone Ultra Short | Jhancock Diversified vs. Oakhurst Short Duration |
| Baillie Gifford vs. Tiaa Cref Small Cap Blend | Baillie Gifford vs. Jhancock Diversified Macro | Baillie Gifford vs. Small Cap Stock | Baillie Gifford vs. Aqr Diversified Arbitrage |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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