Correlation Between Baillie Gifford and CT Private
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and CT Private 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 CT Private 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 CT Private Equity, you can compare the effects of market volatilities on Baillie Gifford and CT Private 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 CT Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and CT Private.
Diversification Opportunities for Baillie Gifford and CT Private
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baillie and CTPE is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Growth and CT Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Private Equity 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 CT Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Private Equity has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and CT Private go up and down completely randomly.
Pair Corralation between Baillie Gifford and CT Private
Assuming the 90 days trading horizon Baillie Gifford Growth is expected to under-perform the CT Private. But the etf apears to be less risky and, when comparing its historical volatility, Baillie Gifford Growth is 1.2 times less risky than CT Private. The etf trades about -0.21 of its potential returns per unit of risk. The CT Private Equity is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 48,850 in CT Private Equity on November 7, 2024 and sell it today you would earn a total of 4,150 from holding CT Private Equity or generate 8.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Growth vs. CT Private Equity
Performance |
| Timeline |
| Baillie Gifford Growth |
| CT Private Equity |
Baillie Gifford and CT Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and CT Private
The main advantage of trading using opposite Baillie Gifford and CT Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, CT Private 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 CT Private will offset losses from the drop in CT Private's long position.| Baillie Gifford vs. Aberdeen New India | Baillie Gifford vs. Downing Strategic Micro Cap | Baillie Gifford vs. CT Private Equity | Baillie Gifford vs. Blackrock Energy and |
| CT Private vs. Aberdeen New India | CT Private vs. Downing Strategic Micro Cap | CT Private vs. Baillie Gifford Growth | CT Private vs. Blackrock Energy and |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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