Correlation Between Baillie Gifford and Amundi EUR
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Amundi EUR 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 Amundi EUR 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 Amundi EUR High, you can compare the effects of market volatilities on Baillie Gifford and Amundi EUR 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 Amundi EUR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Amundi EUR.
Diversification Opportunities for Baillie Gifford and Amundi EUR
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Baillie and Amundi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Growth and Amundi EUR High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi EUR High 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 Amundi EUR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi EUR High has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Amundi EUR go up and down completely randomly.
Pair Corralation between Baillie Gifford and Amundi EUR
Assuming the 90 days trading horizon Baillie Gifford Growth is expected to generate 7.17 times more return on investment than Amundi EUR. However, Baillie Gifford is 7.17 times more volatile than Amundi EUR High. It trades about 0.2 of its potential returns per unit of risk. Amundi EUR High is currently generating about 0.17 per unit of risk. If you would invest 19,440 in Baillie Gifford Growth on September 3, 2024 and sell it today you would earn a total of 7,660 from holding Baillie Gifford Growth or generate 39.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Growth vs. Amundi EUR High
Performance |
| Timeline |
| Baillie Gifford Growth |
| Amundi EUR High |
Baillie Gifford and Amundi EUR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Amundi EUR
The main advantage of trading using opposite Baillie Gifford and Amundi EUR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Amundi EUR 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 Amundi EUR will offset losses from the drop in Amundi EUR'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 |
| Amundi EUR vs. Amundi Index Solutions | Amundi EUR vs. Amundi MSCI Pacific | Amundi EUR vs. Amundi MSCI Europe | Amundi EUR vs. Amundi Index Solutions |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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