Correlation Between Nationwide and Dreyfus Midcap
Can any of the company-specific risk be diversified away by investing in both Nationwide and Dreyfus Midcap 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 and Dreyfus Midcap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide Sp 500 and Dreyfus Midcap Index, you can compare the effects of market volatilities on Nationwide and Dreyfus Midcap 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 with a short position of Dreyfus Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide and Dreyfus Midcap.
Diversification Opportunities for Nationwide and Dreyfus Midcap
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nationwide and Dreyfus is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Sp 500 and Dreyfus Midcap Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Midcap Index and Nationwide 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 Sp 500 are associated (or correlated) with Dreyfus Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Midcap Index has no effect on the direction of Nationwide i.e., Nationwide and Dreyfus Midcap go up and down completely randomly.
Pair Corralation between Nationwide and Dreyfus Midcap
Assuming the 90 days horizon Nationwide Sp 500 is expected to generate 0.65 times more return on investment than Dreyfus Midcap. However, Nationwide Sp 500 is 1.54 times less risky than Dreyfus Midcap. It trades about 0.11 of its potential returns per unit of risk. Dreyfus Midcap Index is currently generating about 0.03 per unit of risk. If you would invest 1,850 in Nationwide Sp 500 on August 30, 2024 and sell it today you would earn a total of 1,015 from holding Nationwide Sp 500 or generate 54.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide Sp 500 vs. Dreyfus Midcap Index
Performance |
| Timeline |
| Nationwide Sp 500 |
| Dreyfus Midcap Index |
Nationwide and Dreyfus Midcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide and Dreyfus Midcap
The main advantage of trading using opposite Nationwide and Dreyfus Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide position performs unexpectedly, Dreyfus Midcap 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 Dreyfus Midcap will offset losses from the drop in Dreyfus Midcap's long position.| Nationwide vs. Vanguard Total Stock | Nationwide vs. Vanguard 500 Index | Nationwide vs. Vanguard Total Stock | Nationwide vs. Vanguard Total Stock |
| Dreyfus Midcap vs. Dreyfus Smallcap Stock | Dreyfus Midcap vs. Bny Mellon Emerging | Dreyfus Midcap vs. Champlain Mid Cap |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |