Correlation Between Nationwide Global and Voya Index
Can any of the company-specific risk be diversified away by investing in both Nationwide Global and Voya Index 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 Nationwide Global and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide Global Equity and Voya Index Solution, you can compare the effects of market volatilities on Nationwide Global and Voya Index 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 Nationwide Global with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Global and Voya Index.
Diversification Opportunities for Nationwide Global and Voya Index
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NATIONWIDE and Voya is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Global Equity and Voya Index Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Solution and Nationwide Global 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 Nationwide Global Equity are associated (or correlated) with Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Solution has no effect on the direction of Nationwide Global i.e., Nationwide Global and Voya Index go up and down completely randomly.
Pair Corralation between Nationwide Global and Voya Index
Assuming the 90 days horizon Nationwide Global Equity is expected to generate 1.66 times more return on investment than Voya Index. However, Nationwide Global is 1.66 times more volatile than Voya Index Solution. It trades about 0.27 of its potential returns per unit of risk. Voya Index Solution is currently generating about 0.34 per unit of risk. If you would invest 2,385 in Nationwide Global Equity on September 5, 2024 and sell it today you would earn a total of 98.00 from holding Nationwide Global Equity or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide Global Equity vs. Voya Index Solution
Performance |
| Timeline |
| Nationwide Global Equity |
| Voya Index Solution |
Nationwide Global and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Global and Voya Index
The main advantage of trading using opposite Nationwide Global and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Global position performs unexpectedly, Voya Index 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 Voya Index will offset losses from the drop in Voya Index's long position.| Nationwide Global vs. Intermediate Term Tax Free Bond | Nationwide Global vs. Bbh Intermediate Municipal | Nationwide Global vs. Morningstar Municipal Bond | Nationwide Global vs. Nuveen Minnesota Municipal |
| Voya Index vs. Northern Small Cap | Voya Index vs. Fuller Thaler Behavioral | Voya Index vs. Jhancock Diversified Macro | Voya Index vs. Lord Abbett Diversified |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |