Correlation Between Nasdaq 100 and Nationwide Fund
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Nationwide Fund 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 Nasdaq 100 and Nationwide Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Fund Class and Nationwide Fund Institutional, you can compare the effects of market volatilities on Nasdaq 100 and Nationwide Fund 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 Nasdaq 100 with a short position of Nationwide Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Nationwide Fund.
Diversification Opportunities for Nasdaq 100 and Nationwide Fund
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nasdaq and Nationwide is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Fund Class and Nationwide Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Fund Inst and Nasdaq 100 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 Nasdaq 100 Fund Class are associated (or correlated) with Nationwide Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Fund Inst has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Nationwide Fund go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Nationwide Fund
Assuming the 90 days horizon Nasdaq 100 is expected to generate 1.36 times less return on investment than Nationwide Fund. In addition to that, Nasdaq 100 is 1.36 times more volatile than Nationwide Fund Institutional. It trades about 0.19 of its total potential returns per unit of risk. Nationwide Fund Institutional is currently generating about 0.36 per unit of volatility. If you would invest 3,313 in Nationwide Fund Institutional on September 4, 2024 and sell it today you would earn a total of 189.00 from holding Nationwide Fund Institutional or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Nasdaq 100 Fund Class vs. Nationwide Fund Institutional
Performance |
| Timeline |
| Nasdaq 100 Fund |
| Nationwide Fund Inst |
Nasdaq 100 and Nationwide Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Nationwide Fund
The main advantage of trading using opposite Nasdaq 100 and Nationwide Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Nationwide Fund 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 Fund will offset losses from the drop in Nationwide Fund's long position.| Nasdaq 100 vs. Nasdaq 100 Fund Class | Nasdaq 100 vs. Nasdaq 100 Fund Class | Nasdaq 100 vs. Nasdaq 100 2x Strategy | Nasdaq 100 vs. Dow 2x Strategy |
| Nationwide Fund vs. Siit Ultra Short | Nationwide Fund vs. Quantitative Longshort Equity | Nationwide Fund vs. Vanguard Institutional Short Term | Nationwide Fund vs. Angel Oak Ultrashort |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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