Correlation Between Nationwide Small and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Nationwide Small and Ashmore Emerging 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 Small and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide Small Cap and Ashmore Emerging Markets, you can compare the effects of market volatilities on Nationwide Small and Ashmore Emerging 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 Small with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Small and Ashmore Emerging.
Diversification Opportunities for Nationwide Small and Ashmore Emerging
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nationwide and Ashmore is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Small Cap and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Emerging Markets and Nationwide Small 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 Small Cap are associated (or correlated) with Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of Nationwide Small i.e., Nationwide Small and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Nationwide Small and Ashmore Emerging
Assuming the 90 days horizon Nationwide Small is expected to generate 1.01 times less return on investment than Ashmore Emerging. In addition to that, Nationwide Small is 1.44 times more volatile than Ashmore Emerging Markets. It trades about 0.17 of its total potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.25 per unit of volatility. If you would invest 1,395 in Ashmore Emerging Markets on May 2, 2025 and sell it today you would earn a total of 168.00 from holding Ashmore Emerging Markets or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide Small Cap vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Nationwide Small Cap |
| Ashmore Emerging Markets |
Nationwide Small and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Small and Ashmore Emerging
The main advantage of trading using opposite Nationwide Small and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Small position performs unexpectedly, Ashmore Emerging 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 Ashmore Emerging will offset losses from the drop in Ashmore Emerging's long position.| Nationwide Small vs. Atac Inflation Rotation | Nationwide Small vs. Loomis Sayles Inflation | Nationwide Small vs. Tiaa Cref Inflation Link | Nationwide Small vs. The Hartford Inflation |
| Ashmore Emerging vs. Jpmorgan Diversified Fund | Ashmore Emerging vs. Adams Diversified Equity | Ashmore Emerging vs. Invesco Diversified Dividend | Ashmore Emerging vs. Harbor Diversified 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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