Correlation Between Us Global and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Us Global and Baillie Gifford 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 Us Global and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Us Global Investors and Baillie Gifford Eafe, you can compare the effects of market volatilities on Us Global and Baillie Gifford 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 Us Global with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Global and Baillie Gifford.
Diversification Opportunities for Us Global and Baillie Gifford
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between USLUX and Baillie is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Us Global Investors and Baillie Gifford Eafe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Eafe and Us Global 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 Us Global Investors are associated (or correlated) with Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford Eafe has no effect on the direction of Us Global i.e., Us Global and Baillie Gifford go up and down completely randomly.
Pair Corralation between Us Global and Baillie Gifford
Assuming the 90 days horizon Us Global Investors is expected to generate 1.11 times more return on investment than Baillie Gifford. However, Us Global is 1.11 times more volatile than Baillie Gifford Eafe. It trades about 0.11 of its potential returns per unit of risk. Baillie Gifford Eafe is currently generating about -0.02 per unit of risk. If you would invest 2,040 in Us Global Investors on September 2, 2024 and sell it today you would earn a total of 145.00 from holding Us Global Investors or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Us Global Investors vs. Baillie Gifford Eafe
Performance |
| Timeline |
| Us Global Investors |
| Baillie Gifford Eafe |
Us Global and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Us Global and Baillie Gifford
The main advantage of trading using opposite Us Global and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Global position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.| Us Global vs. International Paper | Us Global vs. O I Glass | Us Global vs. Smurfit WestRock plc | Us Global vs. Driven Brands Holdings |
| Baillie Gifford vs. World Energy Fund | Baillie Gifford vs. Energy Services Fund | Baillie Gifford vs. Icon Natural Resources | Baillie Gifford vs. Oil Gas Ultrasector |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |