Correlation Between Baillie Gifford and Leverage Shares
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Leverage Shares 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 Leverage Shares 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 Leverage Shares 3x, you can compare the effects of market volatilities on Baillie Gifford and Leverage Shares 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 Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Leverage Shares.
Diversification Opportunities for Baillie Gifford and Leverage Shares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baillie and Leverage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Growth and Leverage Shares 3x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 3x 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 Leverage Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leverage Shares 3x has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Leverage Shares go up and down completely randomly.
Pair Corralation between Baillie Gifford and Leverage Shares
If you would invest 24,200 in Baillie Gifford Growth on September 12, 2024 and sell it today you would earn a total of 3,800 from holding Baillie Gifford Growth or generate 15.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Baillie Gifford Growth vs. Leverage Shares 3x
Performance |
| Timeline |
| Baillie Gifford Growth |
| Leverage Shares 3x |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Baillie Gifford and Leverage Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Leverage Shares
The main advantage of trading using opposite Baillie Gifford and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Leverage Shares 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 Leverage Shares will offset losses from the drop in Leverage Shares' 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 |
| Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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