Correlation Between Great-west Loomis and Nationwide International
Can any of the company-specific risk be diversified away by investing in both Great-west Loomis and Nationwide International 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 Great-west Loomis and Nationwide International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Loomis Sayles and Nationwide International Index, you can compare the effects of market volatilities on Great-west Loomis and Nationwide International 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 Great-west Loomis with a short position of Nationwide International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west Loomis and Nationwide International.
Diversification Opportunities for Great-west Loomis and Nationwide International
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Great-west and Nationwide is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Great West Loomis Sayles and Nationwide International Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide International and Great-west Loomis 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 Great West Loomis Sayles are associated (or correlated) with Nationwide International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide International has no effect on the direction of Great-west Loomis i.e., Great-west Loomis and Nationwide International go up and down completely randomly.
Pair Corralation between Great-west Loomis and Nationwide International
Assuming the 90 days horizon Great West Loomis Sayles is expected to generate 1.49 times more return on investment than Nationwide International. However, Great-west Loomis is 1.49 times more volatile than Nationwide International Index. It trades about 0.08 of its potential returns per unit of risk. Nationwide International Index is currently generating about -0.01 per unit of risk. If you would invest 3,724 in Great West Loomis Sayles on September 1, 2024 and sell it today you would earn a total of 454.00 from holding Great West Loomis Sayles or generate 12.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Great West Loomis Sayles vs. Nationwide International Index
Performance |
| Timeline |
| Great West Loomis |
| Nationwide International |
Great-west Loomis and Nationwide International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west Loomis and Nationwide International
The main advantage of trading using opposite Great-west Loomis and Nationwide International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west Loomis position performs unexpectedly, Nationwide International 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 International will offset losses from the drop in Nationwide International's long position.| Great-west Loomis vs. Gabelli Gold Fund | Great-west Loomis vs. Global Gold Fund | Great-west Loomis vs. Invesco Gold Special | Great-west Loomis vs. International Investors Gold |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |