Correlation Between Baillie Gifford and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Angel Oak 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 Angel Oak 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 Angel Oak Ultrashort, you can compare the effects of market volatilities on Baillie Gifford and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Angel Oak.
Diversification Opportunities for Baillie Gifford and Angel Oak
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baillie and Angel is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Angel Oak Ultrashort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Ultrashort 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Ultrashort has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Angel Oak go up and down completely randomly.
Pair Corralation between Baillie Gifford and Angel Oak
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Angel Oak. In addition to that, Baillie Gifford is 14.08 times more volatile than Angel Oak Ultrashort. It trades about 0.0 of its total potential returns per unit of risk. Angel Oak Ultrashort is currently generating about 0.21 per unit of volatility. If you would invest 958.00 in Angel Oak Ultrashort on September 25, 2024 and sell it today you would earn a total of 25.00 from holding Angel Oak Ultrashort or generate 2.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Baillie Gifford Health vs. Angel Oak Ultrashort
Performance |
Timeline |
Baillie Gifford Health |
Angel Oak Ultrashort |
Baillie Gifford and Angel Oak Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Baillie Gifford and Angel Oak
The main advantage of trading using opposite Baillie Gifford and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.Baillie Gifford vs. Franklin Emerging Market | Baillie Gifford vs. Ashmore Emerging Markets | Baillie Gifford vs. Pace International Emerging | Baillie Gifford vs. Transamerica Emerging Markets |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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