Correlation Between Nationwide Core and Pace Strategic
Can any of the company-specific risk be diversified away by investing in both Nationwide Core and Pace Strategic 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 Core and Pace Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide E Plus and Pace Strategic Fixed, you can compare the effects of market volatilities on Nationwide Core and Pace Strategic 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 Core with a short position of Pace Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Core and Pace Strategic.
Diversification Opportunities for Nationwide Core and Pace Strategic
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NATIONWIDE and Pace is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide E Plus and Pace Strategic Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace Strategic Fixed and Nationwide Core 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 E Plus are associated (or correlated) with Pace Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace Strategic Fixed has no effect on the direction of Nationwide Core i.e., Nationwide Core and Pace Strategic go up and down completely randomly.
Pair Corralation between Nationwide Core and Pace Strategic
Assuming the 90 days horizon Nationwide Core is expected to generate 1.19 times less return on investment than Pace Strategic. In addition to that, Nationwide Core is 1.17 times more volatile than Pace Strategic Fixed. It trades about 0.05 of its total potential returns per unit of risk. Pace Strategic Fixed is currently generating about 0.07 per unit of volatility. If you would invest 1,051 in Pace Strategic Fixed on March 23, 2025 and sell it today you would earn a total of 124.00 from holding Pace Strategic Fixed or generate 11.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide E Plus vs. Pace Strategic Fixed
Performance |
| Timeline |
| Nationwide E Plus |
| Pace Strategic Fixed |
Nationwide Core and Pace Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Core and Pace Strategic
The main advantage of trading using opposite Nationwide Core and Pace Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Core position performs unexpectedly, Pace Strategic 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 Pace Strategic will offset losses from the drop in Pace Strategic's long position.| Nationwide Core vs. Intermediate Term Bond Fund | Nationwide Core vs. Scout E Bond | Nationwide Core vs. Versatile Bond Portfolio | Nationwide Core vs. Dws Money Market |
| Pace Strategic vs. Scout E Bond | Pace Strategic vs. Ab Bond Inflation | Pace Strategic vs. Intermediate Term Bond Fund | Pace Strategic vs. Dws Communications |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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