Correlation Between Baillie Gifford and HSBC ETFs
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and HSBC ETFs 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 ETFs 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 ETFs Public, you can compare the effects of market volatilities on Baillie Gifford and HSBC ETFs 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 ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and HSBC ETFs.
Diversification Opportunities for Baillie Gifford and HSBC ETFs
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baillie and HSBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Growth and HSBC ETFs Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC ETFs Public 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 ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC ETFs Public has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and HSBC ETFs go up and down completely randomly.
Pair Corralation between Baillie Gifford and HSBC ETFs
If you would invest 22,200 in Baillie Gifford Growth on September 3, 2024 and sell it today you would earn a total of 4,900 from holding Baillie Gifford Growth or generate 22.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Baillie Gifford Growth vs. HSBC ETFs Public
Performance |
| Timeline |
| Baillie Gifford Growth |
| HSBC ETFs Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baillie Gifford and HSBC ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and HSBC ETFs
The main advantage of trading using opposite Baillie Gifford and HSBC ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, HSBC ETFs 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 ETFs will offset losses from the drop in HSBC ETFs' long position.| Baillie Gifford vs. Scottish Mortgage Investment | Baillie Gifford vs. CT Private Equity | Baillie Gifford vs. Aberdeen New India | Baillie Gifford vs. Downing Strategic Micro Cap |
| HSBC ETFs vs. HSBC FTSE EPRA | HSBC ETFs vs. HSBC SP 500 | HSBC ETFs vs. HSBC MSCI Emerging | HSBC ETFs 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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