Correlation Between Scout E and Nationwide
Can any of the company-specific risk be diversified away by investing in both Scout E and Nationwide 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 Scout E and Nationwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scout E Bond and Nationwide E Plus, you can compare the effects of market volatilities on Scout E and Nationwide 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 Scout E with a short position of Nationwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scout E and Nationwide.
Diversification Opportunities for Scout E and Nationwide
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Scout and Nationwide is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Scout E Bond and Nationwide E Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide E Plus and Scout E 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 Scout E Bond are associated (or correlated) with Nationwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide E Plus has no effect on the direction of Scout E i.e., Scout E and Nationwide go up and down completely randomly.
Pair Corralation between Scout E and Nationwide
Assuming the 90 days horizon Scout E Bond is expected to generate 0.36 times more return on investment than Nationwide. However, Scout E Bond is 2.76 times less risky than Nationwide. It trades about -0.07 of its potential returns per unit of risk. Nationwide E Plus is currently generating about -0.22 per unit of risk. If you would invest 1,097 in Scout E Bond on September 25, 2025 and sell it today you would lose (4.00) from holding Scout E Bond or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scout E Bond vs. Nationwide E Plus
Performance |
| Timeline |
| Scout E Bond |
| Nationwide E Plus |
Scout E and Nationwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scout E and Nationwide
The main advantage of trading using opposite Scout E and Nationwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scout E position performs unexpectedly, Nationwide 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 will offset losses from the drop in Nationwide's long position.| Scout E vs. Chartwell Short Duration | Scout E vs. Carillon Chartwell Short | Scout E vs. Chartwell Short Duration | Scout E vs. Carillon Chartwell Short |
| Nationwide vs. Nationwide Investor Destinations | Nationwide vs. Nationwide Investor Destinations | Nationwide vs. Nationwide Investor Destinations | Nationwide vs. Nationwide Global Equity |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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