Correlation Between Ssga Sp and Nationwide
Can any of the company-specific risk be diversified away by investing in both Ssga Sp 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 Ssga Sp and Nationwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssga Sp 500 and Nationwide Sp 500, you can compare the effects of market volatilities on Ssga Sp 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 Ssga Sp with a short position of Nationwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssga Sp and Nationwide.
Diversification Opportunities for Ssga Sp and Nationwide
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ssga and Nationwide is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ssga Sp 500 and Nationwide Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Sp 500 and Ssga Sp 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 Ssga Sp 500 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 Sp 500 has no effect on the direction of Ssga Sp i.e., Ssga Sp and Nationwide go up and down completely randomly.
Pair Corralation between Ssga Sp and Nationwide
Assuming the 90 days horizon Ssga Sp 500 is expected to generate 1.0 times more return on investment than Nationwide. However, Ssga Sp 500 is 1.0 times less risky than Nationwide. It trades about 0.1 of its potential returns per unit of risk. Nationwide Sp 500 is currently generating about 0.1 per unit of risk. If you would invest 28,177 in Ssga Sp 500 on August 17, 2025 and sell it today you would earn a total of 1,318 from holding Ssga Sp 500 or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssga Sp 500 vs. Nationwide Sp 500
Performance |
| Timeline |
| Ssga Sp 500 |
| Nationwide Sp 500 |
Ssga Sp and Nationwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssga Sp and Nationwide
The main advantage of trading using opposite Ssga Sp and Nationwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssga Sp 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.| Ssga Sp vs. Dreyfus Institutional Sp | Ssga Sp vs. Nationwide Sp 500 | Ssga Sp vs. Columbia Select Large | Ssga Sp vs. T Rowe Price |
| Nationwide vs. T Rowe Price | Nationwide vs. Columbia Select Large | Nationwide vs. Ssga Sp 500 | Nationwide vs. Dreyfus Institutional Sp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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