Correlation Between Mineral Financial and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Mineral Financial 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 Mineral Financial and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mineral Financial Investments and Baillie Gifford European, you can compare the effects of market volatilities on Mineral Financial 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 Mineral Financial with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mineral Financial and Baillie Gifford.
Diversification Opportunities for Mineral Financial and Baillie Gifford
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mineral and Baillie is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Mineral Financial Investments and Baillie Gifford European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford European and Mineral Financial 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 Mineral Financial Investments 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 European has no effect on the direction of Mineral Financial i.e., Mineral Financial and Baillie Gifford go up and down completely randomly.
Pair Corralation between Mineral Financial and Baillie Gifford
Assuming the 90 days trading horizon Mineral Financial Investments is expected to generate 3.96 times more return on investment than Baillie Gifford. However, Mineral Financial is 3.96 times more volatile than Baillie Gifford European. It trades about 0.34 of its potential returns per unit of risk. Baillie Gifford European is currently generating about 0.38 per unit of risk. If you would invest 1,275 in Mineral Financial Investments on October 23, 2024 and sell it today you would earn a total of 275.00 from holding Mineral Financial Investments or generate 21.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Mineral Financial Investments vs. Baillie Gifford European
Performance |
| Timeline |
| Mineral Financial |
| Baillie Gifford European |
Mineral Financial and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mineral Financial and Baillie Gifford
The main advantage of trading using opposite Mineral Financial and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mineral Financial 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.| Mineral Financial vs. Catalyst Media Group | Mineral Financial vs. CATLIN GROUP | Mineral Financial vs. Tamburi Investment Partners | Mineral Financial vs. Magnora ASA |
| Baillie Gifford vs. Herald Investment Trust | Baillie Gifford vs. Zoom Video Communications | Baillie Gifford vs. Charter Communications Cl | Baillie Gifford vs. Mineral Financial Investments |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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