Correlation Between Issachar Fund and Nationwide Loomis

Can any of the company-specific risk be diversified away by investing in both Issachar Fund and Nationwide Loomis 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 Issachar Fund and Nationwide Loomis into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Issachar Fund Class and Nationwide Loomis All, you can compare the effects of market volatilities on Issachar Fund and Nationwide Loomis 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 Issachar Fund with a short position of Nationwide Loomis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Nationwide Loomis.

Diversification Opportunities for Issachar Fund and Nationwide Loomis

0.34

Correlation Coefficient

Issachar Fund  Nationwide Loomis

Weak diversification

The 3 months correlation between Issachar and Nationwide is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Nationwide Loomis All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Loomis All and Issachar 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 Issachar Fund Class are associated (or correlated) with Nationwide Loomis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Loomis All has no effect on the direction of Issachar Fund i.e., Issachar Fund and Nationwide Loomis go up and down completely randomly.

Pair Corralation between Issachar Fund and Nationwide Loomis

Assuming the 90 days horizon Issachar Fund Class is expected to under-perform the Nationwide Loomis. In addition to that, Issachar Fund is 1.07 times more volatile than Nationwide Loomis All. It trades about -0.12 of its total potential returns per unit of risk. Nationwide Loomis All is currently generating about -0.08 per unit of volatility. If you would invest  2,092  in Nationwide Loomis All on November 28, 2024 and sell it today you would lose (181.00) from holding Nationwide Loomis All or give up 8.65% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.31%
Values	Daily Returns

Issachar Fund Class  vs.  Nationwide Loomis All

Issachar Fund Class

Risk-Adjusted Performance

Very Weak

Over the last 90 days Issachar Fund Class has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Nationwide Loomis All

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nationwide Loomis All has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Issachar Fund and Nationwide Loomis

The main advantage of trading using opposite Issachar Fund and Nationwide Loomis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issachar Fund position performs unexpectedly, Nationwide Loomis 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 Loomis will offset losses from the drop in Nationwide Loomis' long position.

The idea behind Issachar Fund Class and Nationwide Loomis All pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.