Correlation Between Nationwide Growth and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Nationwide Growth and Goldman Sachs 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 Growth and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide Growth Fund and Goldman Sachs Bond, you can compare the effects of market volatilities on Nationwide Growth and Goldman Sachs 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 Growth with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Growth and Goldman Sachs.
Diversification Opportunities for Nationwide Growth and Goldman Sachs
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nationwide and Goldman is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Growth Fund and Goldman Sachs Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Bond and Nationwide Growth 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 Growth Fund are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Bond has no effect on the direction of Nationwide Growth i.e., Nationwide Growth and Goldman Sachs go up and down completely randomly.
Pair Corralation between Nationwide Growth and Goldman Sachs
Assuming the 90 days horizon Nationwide Growth Fund is expected to generate 2.08 times more return on investment than Goldman Sachs. However, Nationwide Growth is 2.08 times more volatile than Goldman Sachs Bond. It trades about 0.18 of its potential returns per unit of risk. Goldman Sachs Bond is currently generating about -0.1 per unit of risk. If you would invest 1,626 in Nationwide Growth Fund on September 12, 2024 and sell it today you would earn a total of 129.00 from holding Nationwide Growth Fund or generate 7.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide Growth Fund vs. Goldman Sachs Bond
Performance |
| Timeline |
| Nationwide Growth |
| Goldman Sachs Bond |
Nationwide Growth and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Growth and Goldman Sachs
The main advantage of trading using opposite Nationwide Growth and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Growth position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Nationwide Growth vs. Arrow Managed Futures | Nationwide Growth vs. Western Asset Inflation | Nationwide Growth vs. Guidepath Managed Futures | Nationwide Growth vs. Federated Hermes Inflation |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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