Correlation Between Inflation-adjusted and Nationwide Inflation
Can any of the company-specific risk be diversified away by investing in both Inflation-adjusted and Nationwide Inflation 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 Inflation-adjusted and Nationwide Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inflation Adjusted Bond Fund and Nationwide Inflation Protected Securities, you can compare the effects of market volatilities on Inflation-adjusted and Nationwide Inflation 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 Inflation-adjusted with a short position of Nationwide Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflation-adjusted and Nationwide Inflation.
Diversification Opportunities for Inflation-adjusted and Nationwide Inflation
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inflation-adjusted and Nationwide is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Inflation Adjusted Bond Fund and Nationwide Inflation Protected in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Inflation and Inflation-adjusted 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 Inflation Adjusted Bond Fund are associated (or correlated) with Nationwide Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Inflation has no effect on the direction of Inflation-adjusted i.e., Inflation-adjusted and Nationwide Inflation go up and down completely randomly.
Pair Corralation between Inflation-adjusted and Nationwide Inflation
Assuming the 90 days horizon Inflation Adjusted Bond Fund is expected to generate 1.02 times more return on investment than Nationwide Inflation. However, Inflation-adjusted is 1.02 times more volatile than Nationwide Inflation Protected Securities. It trades about -0.02 of its potential returns per unit of risk. Nationwide Inflation Protected Securities is currently generating about -0.03 per unit of risk. If you would invest 1,084 in Inflation Adjusted Bond Fund on September 8, 2025 and sell it today you would lose (3.00) from holding Inflation Adjusted Bond Fund or give up 0.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inflation Adjusted Bond Fund vs. Nationwide Inflation Protected
Performance |
| Timeline |
| Inflation Adjusted Bond |
| Nationwide Inflation |
Inflation-adjusted and Nationwide Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflation-adjusted and Nationwide Inflation
The main advantage of trading using opposite Inflation-adjusted and Nationwide Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflation-adjusted position performs unexpectedly, Nationwide Inflation 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 Inflation will offset losses from the drop in Nationwide Inflation's long position.| Inflation-adjusted vs. Mid Cap Value | Inflation-adjusted vs. Equity Growth Fund | Inflation-adjusted vs. Income Growth Fund | Inflation-adjusted vs. Diversified Bond Fund |
| Nationwide Inflation vs. Nova Fund Class | Nationwide Inflation vs. Gmo Quality Fund | Nationwide Inflation vs. Aqr Sustainable Long Short | Nationwide Inflation vs. Ab All Market |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |