Correlation Between Nationwide International and Select Us
Can any of the company-specific risk be diversified away by investing in both Nationwide International and Select Us 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 International and Select Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide International Small and Select Equity Fund, you can compare the effects of market volatilities on Nationwide International and Select Us 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 International with a short position of Select Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide International and Select Us.
Diversification Opportunities for Nationwide International and Select Us
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nationwide and Select is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide International Small and Select Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Equity and Nationwide International 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 International Small are associated (or correlated) with Select Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Equity has no effect on the direction of Nationwide International i.e., Nationwide International and Select Us go up and down completely randomly.
Pair Corralation between Nationwide International and Select Us
Assuming the 90 days horizon Nationwide International Small is expected to generate 1.13 times more return on investment than Select Us. However, Nationwide International is 1.13 times more volatile than Select Equity Fund. It trades about 0.23 of its potential returns per unit of risk. Select Equity Fund is currently generating about 0.24 per unit of risk. If you would invest 1,053 in Nationwide International Small on May 26, 2025 and sell it today you would earn a total of 108.00 from holding Nationwide International Small or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide International Small vs. Select Equity Fund
Performance |
| Timeline |
| Nationwide International |
| Select Equity |
Nationwide International and Select Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide International and Select Us
The main advantage of trading using opposite Nationwide International and Select Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide International position performs unexpectedly, Select Us 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 Select Us will offset losses from the drop in Select Us' long position.| Nationwide International vs. Ab Bond Inflation | Nationwide International vs. Vy Blackrock Inflation | Nationwide International vs. Ab Bond Inflation | Nationwide International vs. Cref Inflation Linked Bond |
| Select Us vs. California Municipal Portfolio | Select Us vs. Virtus Seix Government | Select Us vs. Gurtin California Muni | Select Us vs. Ab Municipal Bond |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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