Correlation Between Nationwide Fund and Western Asset
Can any of the company-specific risk be diversified away by investing in both Nationwide Fund and Western Asset 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 Fund and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide Fund Class and Western Asset E, you can compare the effects of market volatilities on Nationwide Fund and Western Asset 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 Fund with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Fund and Western Asset.
Diversification Opportunities for Nationwide Fund and Western Asset
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nationwide and Western is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Fund Class and Western Asset E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset E and Nationwide Fund 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 Fund Class are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset E has no effect on the direction of Nationwide Fund i.e., Nationwide Fund and Western Asset go up and down completely randomly.
Pair Corralation between Nationwide Fund and Western Asset
Assuming the 90 days horizon Nationwide Fund Class is expected to generate 2.22 times more return on investment than Western Asset. However, Nationwide Fund is 2.22 times more volatile than Western Asset E. It trades about 0.3 of its potential returns per unit of risk. Western Asset E is currently generating about 0.03 per unit of risk. If you would invest 2,866 in Nationwide Fund Class on April 26, 2025 and sell it today you would earn a total of 394.00 from holding Nationwide Fund Class or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide Fund Class vs. Western Asset E
Performance |
| Timeline |
| Nationwide Fund Class |
| Western Asset E |
Nationwide Fund and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Fund and Western Asset
The main advantage of trading using opposite Nationwide Fund and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Fund position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Nationwide Fund vs. Ab Bond Inflation | Nationwide Fund vs. Rbc Ultra Short Fixed | Nationwide Fund vs. Gmo High Yield | Nationwide Fund vs. Ambrus Core Bond |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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