Correlation Between NEOS ETF and Nationwide
Can any of the company-specific risk be diversified away by investing in both NEOS ETF and Nationwide 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 NEOS ETF and Nationwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEOS ETF Trust and Nationwide, you can compare the effects of market volatilities on NEOS ETF and Nationwide 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 NEOS ETF with a short position of Nationwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEOS ETF and Nationwide.
Diversification Opportunities for NEOS ETF and Nationwide
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NEOS and Nationwide is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding NEOS ETF Trust and Nationwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide and NEOS ETF 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 NEOS ETF Trust are associated (or correlated) with Nationwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide has no effect on the direction of NEOS ETF i.e., NEOS ETF and Nationwide go up and down completely randomly.
Pair Corralation between NEOS ETF and Nationwide
If you would invest 2,003 in NEOS ETF Trust on August 27, 2024 and sell it today you would earn a total of 591.00 from holding NEOS ETF Trust or generate 29.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.4% |
| Values | Daily Returns |
NEOS ETF Trust vs. Nationwide
Performance |
| Timeline |
| NEOS ETF Trust |
| Nationwide |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NEOS ETF and Nationwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEOS ETF and Nationwide
The main advantage of trading using opposite NEOS ETF and Nationwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEOS ETF position performs unexpectedly, Nationwide 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 Nationwide will offset losses from the drop in Nationwide's long position.| NEOS ETF vs. Global X Russell | NEOS ETF vs. Global X SP | NEOS ETF vs. Global X NASDAQ | NEOS ETF vs. Amplify CWP Enhanced |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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