Correlation Between Nationwide Growth and Emerald Insights
Can any of the company-specific risk be diversified away by investing in both Nationwide Growth and Emerald Insights 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 Emerald Insights 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 Emerald Insights Fund, you can compare the effects of market volatilities on Nationwide Growth and Emerald Insights 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 Emerald Insights. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Growth and Emerald Insights.
Diversification Opportunities for Nationwide Growth and Emerald Insights
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NATIONWIDE and Emerald is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Growth Fund and Emerald Insights Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald Insights 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 Emerald Insights. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Insights has no effect on the direction of Nationwide Growth i.e., Nationwide Growth and Emerald Insights go up and down completely randomly.
Pair Corralation between Nationwide Growth and Emerald Insights
Assuming the 90 days horizon Nationwide Growth is expected to generate 1.16 times less return on investment than Emerald Insights. But when comparing it to its historical volatility, Nationwide Growth Fund is 1.53 times less risky than Emerald Insights. It trades about 0.37 of its potential returns per unit of risk. Emerald Insights Fund is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,832 in Emerald Insights Fund on September 1, 2024 and sell it today you would earn a total of 128.00 from holding Emerald Insights Fund or generate 6.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nationwide Growth Fund vs. Emerald Insights Fund
Performance |
| Timeline |
| Nationwide Growth |
| Emerald Insights |
Nationwide Growth and Emerald Insights Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Growth and Emerald Insights
The main advantage of trading using opposite Nationwide Growth and Emerald Insights positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Growth position performs unexpectedly, Emerald Insights 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 Emerald Insights will offset losses from the drop in Emerald Insights' long position.| Nationwide Growth vs. John Hancock Financial | Nationwide Growth vs. 1919 Financial Services | Nationwide Growth vs. Goldman Sachs Financial | Nationwide Growth vs. Gabelli Global Financial |
| Emerald Insights vs. Small Midcap Dividend Income | Emerald Insights vs. Kinetics Small Cap | Emerald Insights vs. L Abbett Growth | Emerald Insights vs. Nationwide Growth Fund |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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