Correlation Between Nationwide Bailard and Siit Large

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

By analyzing existing cross correlation between Nationwide Bailard Technology and Siit Large Cap, you can compare the effects of market volatilities on Nationwide Bailard and Siit Large 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 Bailard with a short position of Siit Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Bailard and Siit Large.

Diversification Opportunities for Nationwide Bailard and Siit Large

0.85

Correlation Coefficient

Nationwide Bailard  Siit Large

Very poor diversification

The 3 months correlation between Nationwide and Siit is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Bailard Technology and Siit Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Large Cap and Nationwide Bailard 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 Bailard Technology are associated (or correlated) with Siit Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Large Cap has no effect on the direction of Nationwide Bailard i.e., Nationwide Bailard and Siit Large go up and down completely randomly.

Pair Corralation between Nationwide Bailard and Siit Large

Assuming the 90 days horizon Nationwide Bailard Technology is expected to generate 1.35 times more return on investment than Siit Large. However, Nationwide Bailard is 1.35 times more volatile than Siit Large Cap. It trades about 0.04 of its potential returns per unit of risk. Siit Large Cap is currently generating about 0.04 per unit of risk. If you would invest  2,419  in Nationwide Bailard Technology on October 9, 2024 and sell it today you would earn a total of  280.00  from holding Nationwide Bailard Technology or generate 11.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Nationwide Bailard Technology  vs.  Siit Large Cap

Nationwide Bailard

Risk-Adjusted Performance

0 of 100

Very Weak

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

Siit Large Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siit Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic 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 Nationwide Bailard and Siit Large

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

The idea behind Nationwide Bailard Technology and Siit Large Cap 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.

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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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.