Correlation Between Nationwide International and Nationwide Loomis
Can any of the company-specific risk be diversified away by investing in both Nationwide International and Nationwide Loomis 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 International and Nationwide Loomis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide International Index and Nationwide Loomis All, you can compare the effects of market volatilities on Nationwide International and Nationwide Loomis 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 International with a short position of Nationwide Loomis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide International and Nationwide Loomis.
Diversification Opportunities for Nationwide International and Nationwide Loomis
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nationwide and Nationwide is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide International Index and Nationwide Loomis All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Loomis All and Nationwide International 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 International Index are associated (or correlated) with Nationwide Loomis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Loomis All has no effect on the direction of Nationwide International i.e., Nationwide International and Nationwide Loomis go up and down completely randomly.
Pair Corralation between Nationwide International and Nationwide Loomis
Assuming the 90 days horizon Nationwide International Index is expected to under-perform the Nationwide Loomis. But the mutual fund apears to be less risky and, when comparing its historical volatility, Nationwide International Index is 1.2 times less risky than Nationwide Loomis. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Nationwide Loomis All is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,855 in Nationwide Loomis All on September 12, 2024 and sell it today you would earn a total of 304.00 from holding Nationwide Loomis All or generate 16.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Nationwide International Index vs. Nationwide Loomis All
Performance |
Timeline |
Nationwide International |
Nationwide Loomis All |
Nationwide International and Nationwide Loomis Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nationwide International and Nationwide Loomis
The main advantage of trading using opposite Nationwide International and Nationwide Loomis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide International position performs unexpectedly, Nationwide Loomis 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 Loomis will offset losses from the drop in Nationwide Loomis' long position.Nationwide International vs. Goldman Sachs Clean | Nationwide International vs. Vy Goldman Sachs | Nationwide International vs. Gabelli Gold Fund | Nationwide International vs. Great West Goldman Sachs |
Nationwide Loomis vs. Prudential Core Conservative | Nationwide Loomis vs. Guggenheim Diversified Income | Nationwide Loomis vs. Western Asset Diversified | Nationwide Loomis vs. Global Diversified 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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 | |
Stocks Directory Find actively traded stocks across global markets | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |