Correlation Between Baillie Gifford and ISHARES IV
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and ISHARES IV 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 IV 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 IV PLC, you can compare the effects of market volatilities on Baillie Gifford and ISHARES IV 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 IV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and ISHARES IV.
Diversification Opportunities for Baillie Gifford and ISHARES IV
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Baillie and ISHARES is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Growth and ISHARES IV PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ISHARES IV 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 IV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISHARES IV PLC has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and ISHARES IV go up and down completely randomly.
Pair Corralation between Baillie Gifford and ISHARES IV
Assuming the 90 days trading horizon Baillie Gifford Growth is expected to under-perform the ISHARES IV. In addition to that, Baillie Gifford is 1.74 times more volatile than ISHARES IV PLC. It trades about -0.3 of its total potential returns per unit of risk. ISHARES IV PLC is currently generating about 0.17 per unit of volatility. If you would invest 733.00 in ISHARES IV PLC on October 24, 2024 and sell it today you would earn a total of 21.00 from holding ISHARES IV PLC or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Baillie Gifford Growth vs. ISHARES IV PLC
Performance |
| Timeline |
| Baillie Gifford Growth |
| ISHARES IV PLC |
Baillie Gifford and ISHARES IV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and ISHARES IV
The main advantage of trading using opposite Baillie Gifford and ISHARES IV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, ISHARES IV 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 IV will offset losses from the drop in ISHARES IV's long position.| Baillie Gifford vs. Aberdeen New India | Baillie Gifford vs. Downing Strategic Micro Cap | Baillie Gifford vs. CT Private Equity | Baillie Gifford vs. Blackrock Energy and |
| ISHARES IV vs. ISHARES IV PLC | ISHARES IV vs. ISHARES V PLC | ISHARES IV vs. ISHARES V PLC | ISHARES IV vs. ISHARES IV PLC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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