Baillie Gifford China Fund Volatility

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Baillie Gifford Market Sensitivity And Downside Risk

3 Months Beta |Analyze Baillie Gifford China Demand TrendCheck current 90 days Baillie Gifford correlation with market (Dow Jones Industrial)

Baillie Beta

-0.43

Standard Deviation

2.53

Baillie Gifford China Mutual Fund Volatility Analysis

Baillie Gifford Projected Return Density Against Market

Assuming the 90 days horizon Baillie Gifford China has a beta of -0.4269 suggesting as returns on the benchmark increase, returns on holding Baillie Gifford are expected to decrease at a much lower rate. During a bear market, however, Baillie Gifford China is likely to outperform the market. Baillie Gifford China has an alpha of 0.3063, implying that it can generate a 0.31 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Baillie Gifford's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how baillie mutual fund's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Baillie Gifford Price Volatility?

Several factors can influence a fund's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Baillie Gifford Mutual Fund Risk Measures

Baillie Gifford Mutual Fund Return Volatility

Baillie Gifford historical daily return volatility represents how much of Baillie Gifford fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 2.5328% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7454% volatility on return distribution over the 90 days horizon.

Volatility is a rate at which the price of Baillie Gifford or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Baillie Gifford may increase or decrease. In other words, similar to Baillie's beta indicator, it measures the risk of Baillie Gifford and helps estimate the fluctuations that may happen in a short period of time. So if prices of Baillie Gifford fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.

Baillie Gifford's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Baillie Mutual Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Baillie Gifford's price varies over time.

The analysis of Baillie Gifford's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Baillie Gifford's investment and either accepting that risk or mitigating it. Along with some common measures of Baillie Gifford mutual fund's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.

Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential mutual funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.

The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Baillie Gifford as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Baillie Gifford's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Baillie Gifford's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Baillie Gifford China.

Baillie Gifford financial ratios help investors to determine whether Baillie Mutual Fund is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Baillie with respect to the benefits of owning Baillie Gifford security.