Correlation Between Tglix and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Tglix 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 Tglix and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tglix and Baillie Gifford Health, you can compare the effects of market volatilities on Tglix 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 Tglix with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tglix and Baillie Gifford.
Diversification Opportunities for Tglix and Baillie Gifford
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tglix and Baillie is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Tglix 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 Tglix 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 Tglix 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 Tglix i.e., Tglix and Baillie Gifford go up and down completely randomly.
Pair Corralation between Tglix and Baillie Gifford
Assuming the 90 days horizon Tglix is expected to generate 1.34 times more return on investment than Baillie Gifford. However, Tglix is 1.34 times more volatile than Baillie Gifford Health. It trades about 0.08 of its potential returns per unit of risk. Baillie Gifford Health is currently generating about 0.03 per unit of risk. If you would invest 4,171 in Tglix on September 3, 2024 and sell it today you would earn a total of 1,354 from holding Tglix or generate 32.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tglix vs. Baillie Gifford Health
Performance |
| Timeline |
| Tglix |
| Baillie Gifford Health |
Tglix and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tglix and Baillie Gifford
The main advantage of trading using opposite Tglix and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tglix 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.| Tglix vs. Lord Abbett Inflation | Tglix vs. American Funds Inflation | Tglix vs. Aqr Managed Futures | Tglix vs. Cref Inflation Linked Bond |
| Baillie Gifford vs. Legg Mason Partners | Baillie Gifford vs. T Rowe Price | Baillie Gifford vs. Black Oak Emerging | Baillie Gifford vs. Templeton Emerging Markets |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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