Correlation Between Nationwide Growth and Russell 2000
Can any of the company-specific risk be diversified away by investing in both Nationwide Growth and Russell 2000 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 Russell 2000 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 Russell 2000 15x, you can compare the effects of market volatilities on Nationwide Growth and Russell 2000 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 Russell 2000. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Growth and Russell 2000.
Diversification Opportunities for Nationwide Growth and Russell 2000
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NATIONWIDE and Russell is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Growth Fund and Russell 2000 15x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Russell 2000 15x 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 Russell 2000. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Russell 2000 15x has no effect on the direction of Nationwide Growth i.e., Nationwide Growth and Russell 2000 go up and down completely randomly.
Pair Corralation between Nationwide Growth and Russell 2000
Assuming the 90 days horizon Nationwide Growth is expected to generate 2.83 times less return on investment than Russell 2000. But when comparing it to its historical volatility, Nationwide Growth Fund is 3.4 times less risky than Russell 2000. It trades about 0.35 of its potential returns per unit of risk. Russell 2000 15x is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 5,639 in Russell 2000 15x on September 2, 2024 and sell it today you would earn a total of 884.00 from holding Russell 2000 15x or generate 15.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide Growth Fund vs. Russell 2000 15x
Performance |
| Timeline |
| Nationwide Growth |
| Russell 2000 15x |
Nationwide Growth and Russell 2000 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Growth and Russell 2000
The main advantage of trading using opposite Nationwide Growth and Russell 2000 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Growth position performs unexpectedly, Russell 2000 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 Russell 2000 will offset losses from the drop in Russell 2000's long position.| Nationwide Growth vs. Nationwide Mid Cap | Nationwide Growth vs. Nationwide Small Cap | Nationwide Growth vs. Nationwide International Index | Nationwide Growth vs. Nationwide Fund Institutional |
| Russell 2000 vs. Eip Growth And | Russell 2000 vs. T Rowe Price | Russell 2000 vs. Champlain Mid Cap | Russell 2000 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |