Correlation Between Jhancock Disciplined and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Jhancock Disciplined 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 Disciplined 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 Disciplined Value and Baillie Gifford Health, you can compare the effects of market volatilities on Jhancock Disciplined 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 Disciplined with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Disciplined and Baillie Gifford.
Diversification Opportunities for Jhancock Disciplined and Baillie Gifford
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jhancock and Baillie is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Disciplined Value 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 Disciplined 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 Disciplined Value 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 Disciplined i.e., Jhancock Disciplined and Baillie Gifford go up and down completely randomly.
Pair Corralation between Jhancock Disciplined and Baillie Gifford
Assuming the 90 days horizon Jhancock Disciplined Value is expected to under-perform the Baillie Gifford. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jhancock Disciplined Value is 4.44 times less risky than Baillie Gifford. The mutual fund trades about -0.14 of its potential returns per unit of risk. The Baillie Gifford Health is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 580.00 in Baillie Gifford Health on September 14, 2024 and sell it today you would earn a total of 4.00 from holding Baillie Gifford Health or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Disciplined Value vs. Baillie Gifford Health
Performance |
| Timeline |
| Jhancock Disciplined |
| Baillie Gifford Health |
Jhancock Disciplined and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Disciplined and Baillie Gifford
The main advantage of trading using opposite Jhancock Disciplined and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Disciplined 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 Disciplined vs. Lord Abbett Affiliated | Jhancock Disciplined vs. Qs Large Cap | Jhancock Disciplined vs. Avantis Large Cap | Jhancock Disciplined vs. Guidemark Large Cap |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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