Correlation Between Ambrus Core and Nationwide Fund

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

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

Diversification Opportunities for Ambrus Core and Nationwide Fund

0.12

Correlation Coefficient

Ambrus Core  Nationwide Fund

Average diversification

The 3 months correlation between Ambrus and Nationwide is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Nationwide Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Fund Inst and Ambrus Core 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 Ambrus Core Bond are associated (or correlated) with Nationwide Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Fund Inst has no effect on the direction of Ambrus Core i.e., Ambrus Core and Nationwide Fund go up and down completely randomly.

Pair Corralation between Ambrus Core and Nationwide Fund

Assuming the 90 days horizon Ambrus Core Bond is expected to generate 0.12 times more return on investment than Nationwide Fund. However, Ambrus Core Bond is 8.2 times less risky than Nationwide Fund. It trades about 0.08 of its potential returns per unit of risk. Nationwide Fund Institutional is currently generating about -0.15 per unit of risk. If you would invest  992.00  in Ambrus Core Bond on December 4, 2024 and sell it today you would earn a total of  9.00  from holding Ambrus Core Bond or generate 0.91% return on investment over 90 days.

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

Ambrus Core Bond  vs.  Nationwide Fund Institutional

Ambrus Core Bond

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ambrus Core Bond are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Ambrus Core is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nationwide Fund Inst

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nationwide Fund Institutional 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 technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Ambrus Core and Nationwide Fund

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

The idea behind Ambrus Core Bond and Nationwide Fund Institutional 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 Transaction History module to view history of all your transactions and understand their impact on performance.