Correlation Between Europac Gold and Nationwide Bailard
Can any of the company-specific risk be diversified away by investing in both Europac Gold and Nationwide Bailard 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 Europac Gold and Nationwide Bailard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Nationwide Bailard International, you can compare the effects of market volatilities on Europac Gold and Nationwide Bailard 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 Europac Gold with a short position of Nationwide Bailard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Nationwide Bailard.
Diversification Opportunities for Europac Gold and Nationwide Bailard
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Europac and Nationwide is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and Nationwide Bailard Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Bailard and Europac Gold 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 Europac Gold Fund are associated (or correlated) with Nationwide Bailard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Bailard has no effect on the direction of Europac Gold i.e., Europac Gold and Nationwide Bailard go up and down completely randomly.
Pair Corralation between Europac Gold and Nationwide Bailard
Assuming the 90 days horizon Europac Gold Fund is expected to under-perform the Nationwide Bailard. In addition to that, Europac Gold is 4.89 times more volatile than Nationwide Bailard International. It trades about -0.05 of its total potential returns per unit of risk. Nationwide Bailard International is currently generating about 0.2 per unit of volatility. If you would invest 954.00 in Nationwide Bailard International on September 13, 2024 and sell it today you would earn a total of 23.00 from holding Nationwide Bailard International or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europac Gold Fund vs. Nationwide Bailard Internation
Performance |
| Timeline |
| Europac Gold |
| Nationwide Bailard |
Europac Gold and Nationwide Bailard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Nationwide Bailard
The main advantage of trading using opposite Europac Gold and Nationwide Bailard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold position performs unexpectedly, Nationwide Bailard 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 Nationwide Bailard will offset losses from the drop in Nationwide Bailard's long position.| Europac Gold vs. Europac International Value | Europac Gold vs. Europac International Dividend | Europac Gold vs. Ep Emerging Markets | Europac Gold vs. Europac International Bond |
| Nationwide Bailard vs. Advent Claymore Convertible | Nationwide Bailard vs. Virtus Convertible | Nationwide Bailard vs. Putnam Convertible Incm Gwth | Nationwide Bailard vs. Absolute Convertible Arbitrage |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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