Correlation Between Gmo High and Nationwide Fund
Can any of the company-specific risk be diversified away by investing in both Gmo High 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 Gmo High and Nationwide Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo High Yield and Nationwide Fund Class, you can compare the effects of market volatilities on Gmo High 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 Gmo High with a short position of Nationwide Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo High and Nationwide Fund.
Diversification Opportunities for Gmo High and Nationwide Fund
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gmo and Nationwide is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Gmo High Yield and Nationwide Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Fund Class and Gmo High 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 Gmo High Yield 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 Class has no effect on the direction of Gmo High i.e., Gmo High and Nationwide Fund go up and down completely randomly.
Pair Corralation between Gmo High and Nationwide Fund
Assuming the 90 days horizon Gmo High is expected to generate 2.75 times less return on investment than Nationwide Fund. But when comparing it to its historical volatility, Gmo High Yield is 4.07 times less risky than Nationwide Fund. It trades about 0.35 of its potential returns per unit of risk. Nationwide Fund Class is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3,050 in Nationwide Fund Class on May 29, 2025 and sell it today you would earn a total of 272.00 from holding Nationwide Fund Class or generate 8.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Gmo High Yield vs. Nationwide Fund Class
Performance |
| Timeline |
| Gmo High Yield |
| Nationwide Fund Class |
Gmo High and Nationwide Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo High and Nationwide Fund
The main advantage of trading using opposite Gmo High and Nationwide Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo High 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.| Gmo High vs. Absolute Convertible Arbitrage | Gmo High vs. Allianzgi Convertible Income | Gmo High vs. Columbia Convertible Securities | Gmo High vs. Advent Claymore Convertible |
| Nationwide Fund vs. Gabelli Gold Fund | Nationwide Fund vs. Goldman Sachs Flexible | Nationwide Fund vs. Deutsche Gold Precious | Nationwide Fund vs. Great West Goldman Sachs |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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