Correlation Between Nationwide and Global X
Can any of the company-specific risk be diversified away by investing in both Nationwide and Global X 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 and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide and Global X SP, you can compare the effects of market volatilities on Nationwide and Global X 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 with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide and Global X.
Diversification Opportunities for Nationwide and Global X
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nationwide and Global is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide and Global X SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X SP and Nationwide 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 are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X SP has no effect on the direction of Nationwide i.e., Nationwide and Global X go up and down completely randomly.
Pair Corralation between Nationwide and Global X
If you would invest 3,215 in Global X SP on August 30, 2024 and sell it today you would earn a total of 87.00 from holding Global X SP or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.35% |
| Values | Daily Returns |
Nationwide vs. Global X SP
Performance |
| Timeline |
| Nationwide |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global X SP |
Nationwide and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide and Global X
The main advantage of trading using opposite Nationwide and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Nationwide vs. Global X SP | Nationwide vs. Amplify CWP Enhanced | Nationwide vs. Global X Russell | Nationwide vs. JPMorgan Nasdaq Equity |
| Global X vs. Global X Nasdaq | Global X vs. Global X SP | Global X vs. Global X Russell | Global X vs. Global X SP |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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