Correlation Between Baillie Gifford and HSBC Bloomberg
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and HSBC Bloomberg 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 HSBC Bloomberg 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 HSBC Bloomberg Global, you can compare the effects of market volatilities on Baillie Gifford and HSBC Bloomberg 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 HSBC Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and HSBC Bloomberg.
Diversification Opportunities for Baillie Gifford and HSBC Bloomberg
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baillie and HSBC is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Growth and HSBC Bloomberg Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC Bloomberg Global 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 HSBC Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC Bloomberg Global has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and HSBC Bloomberg go up and down completely randomly.
Pair Corralation between Baillie Gifford and HSBC Bloomberg
Assuming the 90 days trading horizon Baillie Gifford Growth is expected to generate 6.49 times more return on investment than HSBC Bloomberg. However, Baillie Gifford is 6.49 times more volatile than HSBC Bloomberg Global. It trades about 0.4 of its potential returns per unit of risk. HSBC Bloomberg Global is currently generating about -0.29 per unit of risk. If you would invest 20,150 in Baillie Gifford Growth on August 30, 2024 and sell it today you would earn a total of 6,550 from holding Baillie Gifford Growth or generate 32.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Growth vs. HSBC Bloomberg Global
Performance |
| Timeline |
| Baillie Gifford Growth |
| HSBC Bloomberg Global |
Baillie Gifford and HSBC Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and HSBC Bloomberg
The main advantage of trading using opposite Baillie Gifford and HSBC Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, HSBC Bloomberg 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 HSBC Bloomberg will offset losses from the drop in HSBC Bloomberg'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 |
| HSBC Bloomberg vs. HSBC FTSE EPRA | HSBC Bloomberg vs. HSBC SP 500 | HSBC Bloomberg vs. HSBC MSCI Emerging | HSBC Bloomberg vs. HSBC NASDAQ Global |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |