Correlation Between Fam Value and Nationwide Highmark
Can any of the company-specific risk be diversified away by investing in both Fam Value and Nationwide Highmark 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 Fam Value and Nationwide Highmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fam Value Fund and Nationwide Highmark Small, you can compare the effects of market volatilities on Fam Value and Nationwide Highmark 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 Fam Value with a short position of Nationwide Highmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fam Value and Nationwide Highmark.
Diversification Opportunities for Fam Value and Nationwide Highmark
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fam and Nationwide is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Fam Value Fund and Nationwide Highmark Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Highmark Small and Fam Value 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 Fam Value Fund are associated (or correlated) with Nationwide Highmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Highmark Small has no effect on the direction of Fam Value i.e., Fam Value and Nationwide Highmark go up and down completely randomly.
Pair Corralation between Fam Value and Nationwide Highmark
Assuming the 90 days horizon Fam Value Fund is expected to generate 0.84 times more return on investment than Nationwide Highmark. However, Fam Value Fund is 1.19 times less risky than Nationwide Highmark. It trades about 0.36 of its potential returns per unit of risk. Nationwide Highmark Small is currently generating about 0.2 per unit of risk. If you would invest 10,486 in Fam Value Fund on September 1, 2024 and sell it today you would earn a total of 845.00 from holding Fam Value Fund or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fam Value Fund vs. Nationwide Highmark Small
Performance |
| Timeline |
| Fam Value Fund |
| Nationwide Highmark Small |
Fam Value and Nationwide Highmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fam Value and Nationwide Highmark
The main advantage of trading using opposite Fam Value and Nationwide Highmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fam Value position performs unexpectedly, Nationwide Highmark 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 Highmark will offset losses from the drop in Nationwide Highmark's long position.| Fam Value vs. Simt Managed Volatility | Fam Value vs. Hartford Schroders Smallmid | Fam Value vs. Virtus Kar Mid Cap | Fam Value vs. Hennessy Focus Fund |
| Nationwide Highmark vs. Nationwide Highmark Small | Nationwide Highmark vs. Nationwide Highmark Small | Nationwide Highmark vs. Fam Value Fund | Nationwide Highmark vs. Janus Venture Fund |
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 CEOs Directory module to screen CEOs from public companies around the world.
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