Correlation Between Pimco Global and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Pimco Global 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 Pimco Global and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Global Multi Asset and Baillie Gifford Eafe, you can compare the effects of market volatilities on Pimco Global 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 Pimco Global with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Global and Baillie Gifford.
Diversification Opportunities for Pimco Global and Baillie Gifford
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PIMCO and Baillie is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Global Multi Asset 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 Pimco Global 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 Pimco Global Multi Asset 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 Pimco Global i.e., Pimco Global and Baillie Gifford go up and down completely randomly.
Pair Corralation between Pimco Global and Baillie Gifford
Assuming the 90 days horizon Pimco Global Multi Asset is expected to generate 0.41 times more return on investment than Baillie Gifford. However, Pimco Global Multi Asset is 2.46 times less risky than Baillie Gifford. It trades about 0.12 of its potential returns per unit of risk. Baillie Gifford Eafe is currently generating about -0.02 per unit of risk. If you would invest 1,421 in Pimco Global Multi Asset on September 2, 2024 and sell it today you would earn a total of 42.00 from holding Pimco Global Multi Asset or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Global Multi Asset vs. Baillie Gifford Eafe
Performance |
| Timeline |
| Pimco Global Multi |
| Baillie Gifford Eafe |
Pimco Global and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Global and Baillie Gifford
The main advantage of trading using opposite Pimco Global and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Global 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.| Pimco Global vs. Wisdomtree Siegel Global | Pimco Global vs. Rbc Global Opportunities | Pimco Global vs. Us Global Leaders | Pimco Global vs. Ab Global Bond |
| Baillie Gifford vs. The Eafe Pure | Baillie Gifford vs. The Long Term | Baillie Gifford vs. Baillie Gifford China | Baillie Gifford vs. Baillie Gifford China |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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