Correlation Between VinaCapital Vietnam and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both VinaCapital Vietnam 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 VinaCapital Vietnam and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VinaCapital Vietnam Opportunity and Baillie Gifford Growth, you can compare the effects of market volatilities on VinaCapital Vietnam 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 VinaCapital Vietnam with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinaCapital Vietnam and Baillie Gifford.
Diversification Opportunities for VinaCapital Vietnam and Baillie Gifford
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VinaCapital and Baillie is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding VinaCapital Vietnam Opportunit and Baillie Gifford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Growth and VinaCapital Vietnam 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 VinaCapital Vietnam Opportunity 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 Growth has no effect on the direction of VinaCapital Vietnam i.e., VinaCapital Vietnam and Baillie Gifford go up and down completely randomly.
Pair Corralation between VinaCapital Vietnam and Baillie Gifford
Assuming the 90 days trading horizon VinaCapital Vietnam is expected to generate 9.34 times less return on investment than Baillie Gifford. But when comparing it to its historical volatility, VinaCapital Vietnam Opportunity is 1.24 times less risky than Baillie Gifford. It trades about 0.01 of its potential returns per unit of risk. Baillie Gifford Growth is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 15,620 in Baillie Gifford Growth on August 27, 2024 and sell it today you would earn a total of 10,380 from holding Baillie Gifford Growth or generate 66.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
VinaCapital Vietnam Opportunit vs. Baillie Gifford Growth
Performance |
| Timeline |
| VinaCapital Vietnam |
| Baillie Gifford Growth |
VinaCapital Vietnam and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinaCapital Vietnam and Baillie Gifford
The main advantage of trading using opposite VinaCapital Vietnam and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinaCapital Vietnam 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.| VinaCapital Vietnam vs. Edinburgh Worldwide Investment | VinaCapital Vietnam vs. BlackRock Latin American | VinaCapital Vietnam vs. iShares MSCI Japan | VinaCapital Vietnam vs. Amundi EUR High |
| 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 |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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