Correlation Between Baillie Gifford and UBS AG
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and UBS AG 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 UBS AG 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 UBS AG UBS, you can compare the effects of market volatilities on Baillie Gifford and UBS AG 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 UBS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and UBS AG.
Diversification Opportunities for Baillie Gifford and UBS AG
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baillie and UBS is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Growth and UBS AG UBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS AG UBS 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 UBS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS AG UBS has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and UBS AG go up and down completely randomly.
Pair Corralation between Baillie Gifford and UBS AG
Assuming the 90 days trading horizon Baillie Gifford Growth is expected to generate 2.09 times more return on investment than UBS AG. However, Baillie Gifford is 2.09 times more volatile than UBS AG UBS. It trades about 0.45 of its potential returns per unit of risk. UBS AG UBS is currently generating about 0.15 per unit of risk. If you would invest 21,550 in Baillie Gifford Growth on August 30, 2024 and sell it today you would earn a total of 5,150 from holding Baillie Gifford Growth or generate 23.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Growth vs. UBS AG UBS
Performance |
| Timeline |
| Baillie Gifford Growth |
| UBS AG UBS |
Baillie Gifford and UBS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and UBS AG
The main advantage of trading using opposite Baillie Gifford and UBS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, UBS AG 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 UBS AG will offset losses from the drop in UBS AG's long position.| Baillie Gifford vs. Scottish Mortgage Investment | Baillie Gifford vs. CT Private Equity | Baillie Gifford vs. Aberdeen New India | Baillie Gifford vs. Blackrock Energy and |
| UBS AG vs. Scottish Mortgage Investment | UBS AG vs. VinaCapital Vietnam Opportunity | UBS AG vs. Edinburgh Worldwide Investment | UBS AG vs. Baillie Gifford Growth |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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