Correlation Between Baillie Gifford and Symmetry Panoramic

Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Symmetry Panoramic 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 Symmetry Panoramic 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 Symmetry Panoramic Global, you can compare the effects of market volatilities on Baillie Gifford and Symmetry Panoramic 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 Symmetry Panoramic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Symmetry Panoramic.

Diversification Opportunities for Baillie Gifford and Symmetry Panoramic

0.11

Correlation Coefficient

Baillie Gifford  Symmetry Panoramic

Average diversification

The 3 months correlation between Baillie and SYMMETRY is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Symmetry Panoramic Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symmetry Panoramic Global 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 Symmetry Panoramic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symmetry Panoramic Global has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Symmetry Panoramic go up and down completely randomly.

Pair Corralation between Baillie Gifford and Symmetry Panoramic

Assuming the 90 days horizon Baillie Gifford Health is expected to generate 0.53 times more return on investment than Symmetry Panoramic. However, Baillie Gifford Health is 1.88 times less risky than Symmetry Panoramic. It trades about 0.09 of its potential returns per unit of risk. Symmetry Panoramic Global is currently generating about -0.14 per unit of risk. If you would invest  546.00  in Baillie Gifford Health on December 1, 2024 and sell it today you would earn a total of  27.00  from holding Baillie Gifford Health or generate 4.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Baillie Gifford Health  vs.  Symmetry Panoramic Global

Baillie Gifford Health

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Baillie Gifford Health are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Baillie Gifford is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Symmetry Panoramic Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Symmetry Panoramic Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Baillie Gifford and Symmetry Panoramic

The main advantage of trading using opposite Baillie Gifford and Symmetry Panoramic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Symmetry Panoramic 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 Symmetry Panoramic will offset losses from the drop in Symmetry Panoramic's long position.

The idea behind Baillie Gifford Health and Symmetry Panoramic Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.