Correlation Between Europacific Growth and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Europacific Growth 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 Europacific Growth and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europacific Growth Fund and Baillie Gifford Eafe, you can compare the effects of market volatilities on Europacific Growth 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 Europacific Growth with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europacific Growth and Baillie Gifford.
Diversification Opportunities for Europacific Growth and Baillie Gifford
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Europacific and Baillie is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Europacific Growth Fund and Baillie Gifford Eafe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Eafe and Europacific Growth 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 Europacific Growth Fund 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 Eafe has no effect on the direction of Europacific Growth i.e., Europacific Growth and Baillie Gifford go up and down completely randomly.
Pair Corralation between Europacific Growth and Baillie Gifford
Assuming the 90 days horizon Europacific Growth Fund is expected to generate 0.65 times more return on investment than Baillie Gifford. However, Europacific Growth Fund is 1.53 times less risky than Baillie Gifford. It trades about -0.03 of its potential returns per unit of risk. Baillie Gifford Eafe is currently generating about -0.1 per unit of risk. If you would invest 5,667 in Europacific Growth Fund on January 24, 2024 and sell it today you would lose (46.00) from holding Europacific Growth Fund or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.62% |
| Values | Daily Returns |
Europacific Growth Fund vs. Baillie Gifford Eafe
Performance |
| Timeline |
| Europacific Growth |
| Baillie Gifford Eafe |
Europacific Growth and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europacific Growth and Baillie Gifford
The main advantage of trading using opposite Europacific Growth and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europacific Growth 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.| Europacific Growth vs. Income Fund Of | Europacific Growth vs. New World Fund | Europacific Growth vs. American Mutual Fund | Europacific Growth vs. American Mutual Fund |
| Baillie Gifford vs. The Long Term | Baillie Gifford vs. Baillie Gifford China | Baillie Gifford vs. Baillie Gifford China | Baillie Gifford vs. The Global Alpha |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |