Correlation Between Baillie Gifford and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Oppenheimer International 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 Oppenheimer International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baillie Gifford International and Oppenheimer International Growth, you can compare the effects of market volatilities on Baillie Gifford and Oppenheimer International 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 Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Oppenheimer International.
Diversification Opportunities for Baillie Gifford and Oppenheimer International
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Baillie and Oppenheimer is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford International and Oppenheimer International Grow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer International 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 International are associated (or correlated) with Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Oppenheimer International go up and down completely randomly.
Pair Corralation between Baillie Gifford and Oppenheimer International
Assuming the 90 days horizon Baillie Gifford International is expected to generate 1.08 times more return on investment than Oppenheimer International. However, Baillie Gifford is 1.08 times more volatile than Oppenheimer International Growth. It trades about -0.24 of its potential returns per unit of risk. Oppenheimer International Growth is currently generating about -0.34 per unit of risk. If you would invest 1,333 in Baillie Gifford International on January 24, 2024 and sell it today you would lose (53.00) from holding Baillie Gifford International or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford International vs. Oppenheimer International Grow
Performance |
| Timeline |
| Baillie Gifford Inte |
| Oppenheimer International |
Baillie Gifford and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Oppenheimer International
The main advantage of trading using opposite Baillie Gifford and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Oppenheimer International 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 Oppenheimer International will offset losses from the drop in Oppenheimer International's long position.| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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