Correlation Between Nationwide Investor and Western Asset
Can any of the company-specific risk be diversified away by investing in both Nationwide Investor and Western Asset 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 Investor and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide Investor Destinations and Western Asset Inflation, you can compare the effects of market volatilities on Nationwide Investor and Western Asset 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 Investor with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Investor and Western Asset.
Diversification Opportunities for Nationwide Investor and Western Asset
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nationwide and Western is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Investor Destinatio and Western Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Inflation and Nationwide Investor 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 Investor Destinations are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Inflation has no effect on the direction of Nationwide Investor i.e., Nationwide Investor and Western Asset go up and down completely randomly.
Pair Corralation between Nationwide Investor and Western Asset
Assuming the 90 days horizon Nationwide Investor Destinations is expected to generate 0.95 times more return on investment than Western Asset. However, Nationwide Investor Destinations is 1.05 times less risky than Western Asset. It trades about 0.16 of its potential returns per unit of risk. Western Asset Inflation is currently generating about 0.03 per unit of risk. If you would invest 1,012 in Nationwide Investor Destinations on August 30, 2024 and sell it today you would earn a total of 11.00 from holding Nationwide Investor Destinations or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide Investor Destinatio vs. Western Asset Inflation
Performance |
| Timeline |
| Nationwide Investor |
| Western Asset Inflation |
Nationwide Investor and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Investor and Western Asset
The main advantage of trading using opposite Nationwide Investor and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Investor position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Nationwide Investor vs. Western Asset Inflation | Nationwide Investor vs. Oklahoma College Savings | Nationwide Investor vs. Fidelity Sai Inflationfocused | Nationwide Investor vs. American Funds Inflation |
| Western Asset vs. Fisher Small Cap | Western Asset vs. Small Pany Growth | Western Asset vs. Kinetics Small Cap | Western Asset vs. Qs Small Capitalization |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |