Correlation Between Washington Mutual and Baillie Gifford

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Washington Mutual 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 Washington Mutual and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Mutual Investors and Baillie Gifford Health, you can compare the effects of market volatilities on Washington Mutual 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 Washington Mutual with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and Baillie Gifford.

Diversification Opportunities for Washington Mutual and Baillie Gifford

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Washington and Baillie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors 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 Washington Mutual 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 Washington Mutual Investors 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 Washington Mutual i.e., Washington Mutual and Baillie Gifford go up and down completely randomly.

Pair Corralation between Washington Mutual and Baillie Gifford

If you would invest (100.00) in Washington Mutual Investors on October 1, 2024 and sell it today you would earn a total of  100.00  from holding Washington Mutual Investors or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Washington Mutual Investors  vs.  Baillie Gifford Health

 Performance 
       Timeline  
Washington Mutual 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Washington Mutual Investors has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Washington Mutual is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Baillie Gifford Health 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.

Washington Mutual and Baillie Gifford Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Washington Mutual and Baillie Gifford

The main advantage of trading using opposite Washington Mutual and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual 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 Washington Mutual Investors 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.
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios