Correlation Between Baillie Gifford and GraniteShares
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and GraniteShares 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 GraniteShares 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 GraniteShares 3x Short, you can compare the effects of market volatilities on Baillie Gifford and GraniteShares 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 GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and GraniteShares.
Diversification Opportunities for Baillie Gifford and GraniteShares
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baillie and GraniteShares is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Growth and GraniteShares 3x Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Short 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 GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 3x Short has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and GraniteShares go up and down completely randomly.
Pair Corralation between Baillie Gifford and GraniteShares
Assuming the 90 days trading horizon Baillie Gifford Growth is expected to generate 0.43 times more return on investment than GraniteShares. However, Baillie Gifford Growth is 2.35 times less risky than GraniteShares. It trades about 0.49 of its potential returns per unit of risk. GraniteShares 3x Short is currently generating about -0.25 per unit of risk. If you would invest 21,650 in Baillie Gifford Growth on August 31, 2024 and sell it today you would earn a total of 5,550 from holding Baillie Gifford Growth or generate 25.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Baillie Gifford Growth vs. GraniteShares 3x Short
Performance |
| Timeline |
| Baillie Gifford Growth |
| GraniteShares 3x Short |
Baillie Gifford and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and GraniteShares
The main advantage of trading using opposite Baillie Gifford and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, GraniteShares 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 GraniteShares will offset losses from the drop in GraniteShares' 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 |
| GraniteShares vs. GraniteShares 3x Short | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 1x Short |
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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