Correlation Between Dana Large and Nationwide International
Can any of the company-specific risk be diversified away by investing in both Dana Large and Nationwide International 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 Dana Large and Nationwide International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Large Cap and Nationwide International Index, you can compare the effects of market volatilities on Dana Large and Nationwide International 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 Dana Large with a short position of Nationwide International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Nationwide International.
Diversification Opportunities for Dana Large and Nationwide International
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dana and Nationwide is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and Nationwide International Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide International and Dana Large 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 Dana Large Cap are associated (or correlated) with Nationwide International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide International has no effect on the direction of Dana Large i.e., Dana Large and Nationwide International go up and down completely randomly.
Pair Corralation between Dana Large and Nationwide International
Assuming the 90 days horizon Dana Large Cap is expected to generate 1.11 times more return on investment than Nationwide International. However, Dana Large is 1.11 times more volatile than Nationwide International Index. It trades about 0.14 of its potential returns per unit of risk. Nationwide International Index is currently generating about 0.1 per unit of risk. If you would invest 2,382 in Dana Large Cap on September 3, 2025 and sell it today you would earn a total of 160.00 from holding Dana Large Cap or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dana Large Cap vs. Nationwide International Index
Performance |
| Timeline |
| Dana Large Cap |
| Nationwide International |
Dana Large and Nationwide International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana Large and Nationwide International
The main advantage of trading using opposite Dana Large and Nationwide International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large position performs unexpectedly, Nationwide International 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 International will offset losses from the drop in Nationwide International's long position.| Dana Large vs. Dreyfusstandish Global Fixed | Dana Large vs. Investec Global Franchise | Dana Large vs. Gmo Global Equity | Dana Large vs. Ms Global Fixed |
| Nationwide International vs. Dunham Large Cap | Nationwide International vs. American Century Etf | Nationwide International vs. Dana Large Cap | Nationwide International vs. Large Cap International |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |