Correlation Between Nationwide Highmark and Sp Midcap
Can any of the company-specific risk be diversified away by investing in both Nationwide Highmark and Sp Midcap 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 Highmark and Sp Midcap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide Highmark Small and Sp Midcap Index, you can compare the effects of market volatilities on Nationwide Highmark and Sp Midcap 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 Highmark with a short position of Sp Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Highmark and Sp Midcap.
Diversification Opportunities for Nationwide Highmark and Sp Midcap
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nationwide and SPMIX is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Highmark Small and Sp Midcap Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sp Midcap Index and Nationwide Highmark 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 Highmark Small are associated (or correlated) with Sp Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sp Midcap Index has no effect on the direction of Nationwide Highmark i.e., Nationwide Highmark and Sp Midcap go up and down completely randomly.
Pair Corralation between Nationwide Highmark and Sp Midcap
Assuming the 90 days horizon Nationwide Highmark is expected to generate 2.35 times less return on investment than Sp Midcap. In addition to that, Nationwide Highmark is 1.12 times more volatile than Sp Midcap Index. It trades about 0.09 of its total potential returns per unit of risk. Sp Midcap Index is currently generating about 0.24 per unit of volatility. If you would invest 2,549 in Sp Midcap Index on October 21, 2024 and sell it today you would earn a total of 85.00 from holding Sp Midcap Index or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide Highmark Small vs. Sp Midcap Index
Performance |
| Timeline |
| Nationwide Highmark Small |
| Sp Midcap Index |
Nationwide Highmark and Sp Midcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Highmark and Sp Midcap
The main advantage of trading using opposite Nationwide Highmark and Sp Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Highmark position performs unexpectedly, Sp Midcap 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 Sp Midcap will offset losses from the drop in Sp Midcap's long position.| Nationwide Highmark vs. Nationwide Highmark Small | Nationwide Highmark vs. Nationwide Highmark Small | Nationwide Highmark vs. Fam Value Fund | Nationwide Highmark vs. Janus Venture Fund |
| Sp Midcap vs. Pace High Yield | Sp Midcap vs. Needham Aggressive Growth | Sp Midcap vs. Prudential High Yield | Sp Midcap vs. Ab High Income |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |