Correlation Between Aqr Sustainable and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Aqr Sustainable 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 Aqr Sustainable and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Sustainable Long Short and Baillie Gifford Eafe, you can compare the effects of market volatilities on Aqr Sustainable 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 Aqr Sustainable with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Sustainable and Baillie Gifford.
Diversification Opportunities for Aqr Sustainable and Baillie Gifford
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aqr and Baillie is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Sustainable Long Short 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 Aqr Sustainable 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 Aqr Sustainable Long Short 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 Aqr Sustainable i.e., Aqr Sustainable and Baillie Gifford go up and down completely randomly.
Pair Corralation between Aqr Sustainable and Baillie Gifford
Assuming the 90 days horizon Aqr Sustainable Long Short is expected to generate 1.67 times more return on investment than Baillie Gifford. However, Aqr Sustainable is 1.67 times more volatile than Baillie Gifford Eafe. It trades about 0.08 of its potential returns per unit of risk. Baillie Gifford Eafe is currently generating about 0.01 per unit of risk. If you would invest 1,029 in Aqr Sustainable Long Short on September 12, 2024 and sell it today you would earn a total of 505.00 from holding Aqr Sustainable Long Short or generate 49.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Sustainable Long Short vs. Baillie Gifford Eafe
Performance |
| Timeline |
| Aqr Sustainable Long |
| Baillie Gifford Eafe |
Aqr Sustainable and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Sustainable and Baillie Gifford
The main advantage of trading using opposite Aqr Sustainable and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Sustainable 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.| Aqr Sustainable vs. Wilmington Diversified Income | Aqr Sustainable vs. Jpmorgan Diversified Fund | Aqr Sustainable vs. Western Asset Diversified | Aqr Sustainable vs. Guggenheim Diversified Income |
| Baillie Gifford vs. Europacific Growth Fund | Baillie Gifford vs. SCOR PK | Baillie Gifford vs. Morningstar Unconstrained Allocation | Baillie Gifford vs. Thrivent High Yield |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |