Correlation Between Nationwide Small and Nationwide Fund
Can any of the company-specific risk be diversified away by investing in both Nationwide Small and Nationwide Fund 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 Small and Nationwide Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide Small Cap and Nationwide Fund Class, you can compare the effects of market volatilities on Nationwide Small and Nationwide Fund 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 Small with a short position of Nationwide Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Small and Nationwide Fund.
Diversification Opportunities for Nationwide Small and Nationwide Fund
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nationwide and Nationwide is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Small Cap and Nationwide Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Fund Class and Nationwide Small 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 Small Cap are associated (or correlated) with Nationwide Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Fund Class has no effect on the direction of Nationwide Small i.e., Nationwide Small and Nationwide Fund go up and down completely randomly.
Pair Corralation between Nationwide Small and Nationwide Fund
Assuming the 90 days horizon Nationwide Small Cap is expected to generate 2.19 times more return on investment than Nationwide Fund. However, Nationwide Small is 2.19 times more volatile than Nationwide Fund Class. It trades about 0.3 of its potential returns per unit of risk. Nationwide Fund Class is currently generating about 0.36 per unit of risk. If you would invest 1,205 in Nationwide Small Cap on September 1, 2024 and sell it today you would earn a total of 131.00 from holding Nationwide Small Cap or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide Small Cap vs. Nationwide Fund Class
Performance |
| Timeline |
| Nationwide Small Cap |
| Nationwide Fund Class |
Nationwide Small and Nationwide Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Small and Nationwide Fund
The main advantage of trading using opposite Nationwide Small and Nationwide Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Small position performs unexpectedly, Nationwide Fund 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 Fund will offset losses from the drop in Nationwide Fund's long position.| Nationwide Small vs. Rbc Global Opportunities | Nationwide Small vs. Wisdomtree Siegel Global | Nationwide Small vs. T Rowe Price | Nationwide Small vs. Us Global Leaders |
| Nationwide Fund vs. Nationwide Mid Cap | Nationwide Fund vs. Nationwide Small Cap | Nationwide Fund vs. Nationwide International Index | Nationwide Fund vs. Nationwide Fund Institutional |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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