Correlation Between Touchstone Ultra and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Touchstone Ultra 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 Touchstone Ultra and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Ultra Short and Baillie Gifford International, you can compare the effects of market volatilities on Touchstone Ultra 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 Touchstone Ultra with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Ultra and Baillie Gifford.
Diversification Opportunities for Touchstone Ultra and Baillie Gifford
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Touchstone and Baillie is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Ultra Short and Baillie Gifford International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Inte and Touchstone Ultra 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 Touchstone Ultra 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 Inte has no effect on the direction of Touchstone Ultra i.e., Touchstone Ultra and Baillie Gifford go up and down completely randomly.
Pair Corralation between Touchstone Ultra and Baillie Gifford
Assuming the 90 days horizon Touchstone Ultra is expected to generate 6.36 times less return on investment than Baillie Gifford. But when comparing it to its historical volatility, Touchstone Ultra Short is 10.43 times less risky than Baillie Gifford. It trades about 0.27 of its potential returns per unit of risk. Baillie Gifford International is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,376 in Baillie Gifford International on September 14, 2024 and sell it today you would earn a total of 47.00 from holding Baillie Gifford International or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Ultra Short vs. Baillie Gifford International
Performance |
| Timeline |
| Touchstone Ultra Short |
| Baillie Gifford Inte |
Touchstone Ultra and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Ultra and Baillie Gifford
The main advantage of trading using opposite Touchstone Ultra and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Ultra 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.| Touchstone Ultra vs. Touchstone Small Cap | Touchstone Ultra vs. Touchstone Sands Capital | Touchstone Ultra vs. Mid Cap Growth | Touchstone Ultra vs. Mid Cap Growth |
| Baillie Gifford vs. Angel Oak Multi Strategy | Baillie Gifford vs. Dws Emerging Markets | Baillie Gifford vs. Ashmore Emerging Markets | Baillie Gifford vs. Siit 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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