Correlation Between Baillie Gifford and ISHARES V
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and ISHARES V 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 ISHARES V 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 ISHARES V PLC, you can compare the effects of market volatilities on Baillie Gifford and ISHARES V 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 ISHARES V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and ISHARES V.
Diversification Opportunities for Baillie Gifford and ISHARES V
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Baillie and ISHARES is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Growth and ISHARES V PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ISHARES V PLC 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 ISHARES V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISHARES V PLC has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and ISHARES V go up and down completely randomly.
Pair Corralation between Baillie Gifford and ISHARES V
Assuming the 90 days trading horizon Baillie Gifford Growth is expected to generate 13.95 times more return on investment than ISHARES V. However, Baillie Gifford is 13.95 times more volatile than ISHARES V PLC. It trades about 0.33 of its potential returns per unit of risk. ISHARES V PLC is currently generating about 0.19 per unit of risk. If you would invest 24,200 in Baillie Gifford Growth on September 12, 2024 and sell it today you would earn a total of 3,600 from holding Baillie Gifford Growth or generate 14.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Growth vs. ISHARES V PLC
Performance |
| Timeline |
| Baillie Gifford Growth |
| ISHARES V PLC |
Baillie Gifford and ISHARES V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and ISHARES V
The main advantage of trading using opposite Baillie Gifford and ISHARES V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, ISHARES V 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 ISHARES V will offset losses from the drop in ISHARES V's 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 |
| ISHARES V vs. Edinburgh Worldwide Investment | ISHARES V vs. BlackRock Latin American | ISHARES V vs. Coor Service Management | ISHARES V vs. Franklin FTSE Brazil |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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