Correlation Between Tiaa-cref Small-cap and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Tiaa-cref Small-cap 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 Tiaa-cref Small-cap and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Small Cap Blend and Baillie Gifford Health, you can compare the effects of market volatilities on Tiaa-cref Small-cap 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 Tiaa-cref Small-cap with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Small-cap and Baillie Gifford.
Diversification Opportunities for Tiaa-cref Small-cap and Baillie Gifford
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tiaa-cref and Baillie is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Small Cap Blend 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 Tiaa-cref Small-cap 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 Tiaa Cref Small Cap Blend 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 Tiaa-cref Small-cap i.e., Tiaa-cref Small-cap and Baillie Gifford go up and down completely randomly.
Pair Corralation between Tiaa-cref Small-cap and Baillie Gifford
Assuming the 90 days horizon Tiaa Cref Small Cap Blend is expected to under-perform the Baillie Gifford. In addition to that, Tiaa-cref Small-cap is 15.59 times more volatile than Baillie Gifford Health. It trades about -0.26 of its total potential returns per unit of risk. Baillie Gifford Health is currently generating about -0.31 per unit of volatility. If you would invest 576.00 in Baillie Gifford Health on October 14, 2024 and sell it today you would lose (3.00) from holding Baillie Gifford Health or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Small Cap Blend vs. Baillie Gifford Health
Performance |
| Timeline |
| Tiaa-cref Small-cap |
| Baillie Gifford Health |
Tiaa-cref Small-cap and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa-cref Small-cap and Baillie Gifford
The main advantage of trading using opposite Tiaa-cref Small-cap and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Small-cap 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.| Tiaa-cref Small-cap vs. Alternative Asset Allocation | Tiaa-cref Small-cap vs. Versatile Bond Portfolio | Tiaa-cref Small-cap vs. Tax Managed Large Cap | Tiaa-cref Small-cap vs. T Rowe Price |
| Baillie Gifford vs. Tiaa Cref Small Cap Blend | Baillie Gifford vs. Jhancock Diversified Macro | Baillie Gifford vs. Small Cap Stock | Baillie Gifford vs. Aqr Diversified Arbitrage |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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