Correlation Between Baillie Gifford and IShares Covered
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and IShares Covered 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 Covered 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 Covered Bond, you can compare the effects of market volatilities on Baillie Gifford and IShares Covered 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 Covered. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and IShares Covered.
Diversification Opportunities for Baillie Gifford and IShares Covered
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baillie and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Growth and IShares Covered Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares Covered Bond 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 Covered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares Covered Bond has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and IShares Covered go up and down completely randomly.
Pair Corralation between Baillie Gifford and IShares Covered
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. IShares Covered Bond
Performance |
| Timeline |
| Baillie Gifford Growth |
| IShares Covered Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baillie Gifford and IShares Covered Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and IShares Covered
The main advantage of trading using opposite Baillie Gifford and IShares Covered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, IShares Covered 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 Covered will offset losses from the drop in IShares Covered's 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 |
| IShares Covered vs. iShares MSCI Japan | IShares Covered vs. iShares JP Morgan | IShares Covered vs. iShares MSCI Europe | IShares Covered vs. iShares Nasdaq Biotechnology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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