Correlation Between Global Hard and Baillie Gifford

Can any of the company-specific risk be diversified away by investing in both Global Hard 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 Global Hard and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Hard Assets and Baillie Gifford Health, you can compare the effects of market volatilities on Global Hard 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 Global Hard with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Hard and Baillie Gifford.

Diversification Opportunities for Global Hard and Baillie Gifford

0.0

Correlation Coefficient

Global Hard  Baillie Gifford

Pay attention - limited upside

The 3 months correlation between GLOBAL and Baillie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Hard Assets and Baillie Gifford Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Health and Global Hard 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 Global Hard Assets 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 Health has no effect on the direction of Global Hard i.e., Global Hard and Baillie Gifford go up and down completely randomly.

Pair Corralation between Global Hard and Baillie Gifford

If you would invest  3,615  in Global Hard Assets on December 29, 2024 and sell it today you would earn a total of  295.00  from holding Global Hard Assets or generate 8.16% return on investment over 90 days.

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

Global Hard Assets  vs.  Baillie Gifford Health

Global Hard Assets

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global Hard Assets are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Global Hard may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Baillie Gifford Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Baillie Gifford Health has generated negative risk-adjusted returns adding no value to fund investors. 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.

Pair Trading with Global Hard and Baillie Gifford

The main advantage of trading using opposite Global Hard and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Hard 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.

The idea behind Global Hard Assets and Baillie Gifford Health 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.