Correlation Between Baillie Gifford and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Massmutual Select 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 Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baillie Gifford Health and Massmutual Select T, you can compare the effects of market volatilities on Baillie Gifford and Massmutual Select 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 Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Massmutual Select.
Diversification Opportunities for Baillie Gifford and Massmutual Select
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baillie and MassMutual is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Massmutual Select T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select 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 Health are associated (or correlated) with Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Massmutual Select go up and down completely randomly.
Pair Corralation between Baillie Gifford and Massmutual Select
Assuming the 90 days horizon Baillie Gifford Health is expected to generate 0.23 times more return on investment than Massmutual Select. However, Baillie Gifford Health is 4.38 times less risky than Massmutual Select. It trades about -0.12 of its potential returns per unit of risk. Massmutual Select T is currently generating about -0.1 per unit of risk. If you would invest 586.00 in Baillie Gifford Health on December 4, 2024 and sell it today you would lose (13.00) from holding Baillie Gifford Health or give up 2.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Baillie Gifford Health vs. Massmutual Select T
Performance |
Timeline |
Baillie Gifford Health |
Massmutual Select |
Baillie Gifford and Massmutual Select Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Baillie Gifford and Massmutual Select
The main advantage of trading using opposite Baillie Gifford and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.Baillie Gifford vs. Federated Hermes Conservative | Baillie Gifford vs. Tiaa Cref Lifestyle Conservative | Baillie Gifford vs. Massmutual Premier Diversified | Baillie Gifford vs. Jhancock Diversified Macro |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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