Correlation Between Nationwide Growth and Jhancock Multi-index
Can any of the company-specific risk be diversified away by investing in both Nationwide Growth and Jhancock Multi-index 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 Jhancock Multi-index 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 Jhancock Multi Index 2065, you can compare the effects of market volatilities on Nationwide Growth and Jhancock Multi-index 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 Jhancock Multi-index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Growth and Jhancock Multi-index.
Diversification Opportunities for Nationwide Growth and Jhancock Multi-index
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NATIONWIDE and Jhancock is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Growth Fund and Jhancock Multi Index 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Multi Index 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 Jhancock Multi-index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Multi Index has no effect on the direction of Nationwide Growth i.e., Nationwide Growth and Jhancock Multi-index go up and down completely randomly.
Pair Corralation between Nationwide Growth and Jhancock Multi-index
Assuming the 90 days horizon Nationwide Growth Fund is expected to generate 1.08 times more return on investment than Jhancock Multi-index. However, Nationwide Growth is 1.08 times more volatile than Jhancock Multi Index 2065. It trades about 0.12 of its potential returns per unit of risk. Jhancock Multi Index 2065 is currently generating about 0.1 per unit of risk. If you would invest 1,324 in Nationwide Growth Fund on September 1, 2024 and sell it today you would earn a total of 240.00 from holding Nationwide Growth Fund or generate 18.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
Nationwide Growth Fund vs. Jhancock Multi Index 2065
Performance |
| Timeline |
| Nationwide Growth |
| Jhancock Multi Index |
Nationwide Growth and Jhancock Multi-index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Growth and Jhancock Multi-index
The main advantage of trading using opposite Nationwide Growth and Jhancock Multi-index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Growth position performs unexpectedly, Jhancock Multi-index 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 Jhancock Multi-index will offset losses from the drop in Jhancock Multi-index's 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 |
| Jhancock Multi-index vs. Kinetics Small Cap | Jhancock Multi-index vs. Nationwide Growth Fund | Jhancock Multi-index vs. Touchstone Small Cap | Jhancock Multi-index vs. Chase 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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