Correlation Between Baillie Gifford and Westcore Global
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Westcore Global 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 Westcore Global 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 Westcore Global Large Cap, you can compare the effects of market volatilities on Baillie Gifford and Westcore Global 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 Westcore Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Westcore Global.
Diversification Opportunities for Baillie Gifford and Westcore Global
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Baillie and Westcore is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Westcore Global Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westcore Global Large 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 Westcore Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westcore Global Large has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Westcore Global go up and down completely randomly.
Pair Corralation between Baillie Gifford and Westcore Global
Assuming the 90 days horizon Baillie Gifford Health is expected to generate 1.69 times more return on investment than Westcore Global. However, Baillie Gifford is 1.69 times more volatile than Westcore Global Large Cap. It trades about -0.02 of its potential returns per unit of risk. Westcore Global Large Cap is currently generating about -0.08 per unit of risk. If you would invest 590.00 in Baillie Gifford Health on October 7, 2024 and sell it today you would lose (17.00) from holding Baillie Gifford Health or give up 2.88% 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. Westcore Global Large Cap
Performance |
Timeline |
Baillie Gifford Health |
Westcore Global Large |
Baillie Gifford and Westcore Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Baillie Gifford and Westcore Global
The main advantage of trading using opposite Baillie Gifford and Westcore Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Westcore Global 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 Westcore Global will offset losses from the drop in Westcore Global's long position.Baillie Gifford vs. Siit High Yield | Baillie Gifford vs. Oklahoma College Savings | Baillie Gifford vs. Goldman Sachs High | Baillie Gifford vs. Morningstar Aggressive Growth |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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