Correlation Between Baillie Gifford and Multi Units
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Multi Units 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 Baillie Gifford and Multi Units into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baillie Gifford Growth and Multi Units France, you can compare the effects of market volatilities on Baillie Gifford and Multi Units 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 Baillie Gifford with a short position of Multi Units. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Multi Units.
Diversification Opportunities for Baillie Gifford and Multi Units
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baillie and Multi is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Growth and Multi Units France in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Units France and Baillie Gifford 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 Baillie Gifford Growth are associated (or correlated) with Multi Units. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Units France has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Multi Units go up and down completely randomly.
Pair Corralation between Baillie Gifford and Multi Units
Assuming the 90 days trading horizon Baillie Gifford Growth is expected to generate 1.67 times more return on investment than Multi Units. However, Baillie Gifford is 1.67 times more volatile than Multi Units France. It trades about 0.09 of its potential returns per unit of risk. Multi Units France is currently generating about 0.04 per unit of risk. If you would invest 15,840 in Baillie Gifford Growth on November 2, 2024 and sell it today you would earn a total of 11,010 from holding Baillie Gifford Growth or generate 69.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Baillie Gifford Growth vs. Multi Units France
Performance |
| Timeline |
| Baillie Gifford Growth |
| Multi Units France |
Baillie Gifford and Multi Units Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Multi Units
The main advantage of trading using opposite Baillie Gifford and Multi Units positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Multi Units 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 Multi Units will offset losses from the drop in Multi Units' long position.| Baillie Gifford vs. iShares MSCI Japan | Baillie Gifford vs. Amundi EUR High | Baillie Gifford vs. iShares JP Morgan | Baillie Gifford vs. Xtrackers MSCI |
| Multi Units vs. Multi Units Luxembourg | Multi Units vs. Multi Units Luxembourg | Multi Units vs. Multi Units France | Multi Units vs. Multi Units Luxembourg |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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