Correlation Between Baillie Gifford and KraneShares MSCI
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and KraneShares MSCI 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 KraneShares MSCI 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 KraneShares MSCI China, you can compare the effects of market volatilities on Baillie Gifford and KraneShares MSCI 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 KraneShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and KraneShares MSCI.
Diversification Opportunities for Baillie Gifford and KraneShares MSCI
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baillie and KraneShares is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Growth and KraneShares MSCI China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares MSCI China 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 KraneShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares MSCI China has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and KraneShares MSCI go up and down completely randomly.
Pair Corralation between Baillie Gifford and KraneShares MSCI
Assuming the 90 days trading horizon Baillie Gifford Growth is expected to generate 0.67 times more return on investment than KraneShares MSCI. However, Baillie Gifford Growth is 1.49 times less risky than KraneShares MSCI. It trades about 0.2 of its potential returns per unit of risk. KraneShares MSCI China is currently generating about 0.04 per unit of risk. If you would invest 19,300 in Baillie Gifford Growth on August 30, 2024 and sell it today you would earn a total of 7,900 from holding Baillie Gifford Growth or generate 40.93% 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. KraneShares MSCI China
Performance |
| Timeline |
| Baillie Gifford Growth |
| KraneShares MSCI China |
Baillie Gifford and KraneShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and KraneShares MSCI
The main advantage of trading using opposite Baillie Gifford and KraneShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, KraneShares MSCI 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 KraneShares MSCI will offset losses from the drop in KraneShares MSCI'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 |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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