Correlation Between Investec Emerging and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Investec Emerging 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 Investec Emerging and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Emerging Markets and Baillie Gifford Eafe, you can compare the effects of market volatilities on Investec Emerging 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 Investec Emerging with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Baillie Gifford.
Diversification Opportunities for Investec Emerging and Baillie Gifford
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Investec and Baillie is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets 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 Investec Emerging 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 Investec Emerging Markets 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 Investec Emerging i.e., Investec Emerging and Baillie Gifford go up and down completely randomly.
Pair Corralation between Investec Emerging and Baillie Gifford
Assuming the 90 days horizon Investec Emerging Markets is expected to generate 0.73 times more return on investment than Baillie Gifford. However, Investec Emerging Markets is 1.37 times less risky than Baillie Gifford. It trades about 0.06 of its potential returns per unit of risk. Baillie Gifford Eafe is currently generating about 0.03 per unit of risk. If you would invest 859.00 in Investec Emerging Markets on December 4, 2024 and sell it today you would earn a total of 229.00 from holding Investec Emerging Markets or generate 26.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Emerging Markets vs. Baillie Gifford Eafe
Performance |
| Timeline |
| Investec Emerging Markets |
| Baillie Gifford Eafe |
Investec Emerging and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Baillie Gifford
The main advantage of trading using opposite Investec Emerging and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging 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.| Investec Emerging vs. Pimco Emerging Markets | Investec Emerging vs. Hartford Schroders Emerging | Investec Emerging vs. The Hartford Emerging | Investec Emerging vs. Rbc Emerging Markets |
| Baillie Gifford vs. Fidelity Real Estate | Baillie Gifford vs. Texton Property | Baillie Gifford vs. Global Real Estate | Baillie Gifford vs. Neuberger Berman Real |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |