Correlation Between Scharf Global and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Scharf 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 Scharf 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 Scharf Global Opportunity and Baillie Gifford Eafe, you can compare the effects of market volatilities on Scharf 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 Scharf Global with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and Baillie Gifford.
Diversification Opportunities for Scharf Global and Baillie Gifford
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Scharf and Baillie is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity 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 Scharf 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 Scharf Global 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 Eafe has no effect on the direction of Scharf Global i.e., Scharf Global and Baillie Gifford go up and down completely randomly.
Pair Corralation between Scharf Global and Baillie Gifford
Assuming the 90 days horizon Scharf Global Opportunity is expected to generate 0.6 times more return on investment than Baillie Gifford. However, Scharf Global Opportunity is 1.65 times less risky than Baillie Gifford. It trades about 0.12 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 3,665 in Scharf Global Opportunity on September 2, 2024 and sell it today you would earn a total of 164.00 from holding Scharf Global Opportunity or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Global Opportunity vs. Baillie Gifford Eafe
Performance |
| Timeline |
| Scharf Global Opportunity |
| Baillie Gifford Eafe |
Scharf Global and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Global and Baillie Gifford
The main advantage of trading using opposite Scharf Global and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf 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.| Scharf Global vs. Scharf Balanced Opportunity | Scharf Global vs. Scharf Fund Retail | Scharf Global vs. Scharf Balanced Opportunity | Scharf Global vs. Virtus Allianzgi Artificial |
| Baillie Gifford vs. The Eafe Pure | Baillie Gifford vs. The Long Term | Baillie Gifford vs. Baillie Gifford China | Baillie Gifford vs. Baillie Gifford China |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |