Correlation Between The Gabelli and Nationwide Small

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

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

Diversification Opportunities for The Gabelli and Nationwide Small

0.8

Correlation Coefficient

The Gabelli  Nationwide Small

Very poor diversification

The 3 months correlation between The and Nationwide is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Global and Nationwide Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Small Cap and The Gabelli 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 The Gabelli Global are associated (or correlated) with Nationwide Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Small Cap has no effect on the direction of The Gabelli i.e., The Gabelli and Nationwide Small go up and down completely randomly.

Pair Corralation between The Gabelli and Nationwide Small

Assuming the 90 days horizon The Gabelli is expected to generate 2.39 times less return on investment than Nationwide Small. But when comparing it to its historical volatility, The Gabelli Global is 1.79 times less risky than Nationwide Small. It trades about 0.1 of its potential returns per unit of risk. Nationwide Small Cap is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,142  in Nationwide Small Cap on July 19, 2025 and sell it today you would earn a total of  122.00  from holding Nationwide Small Cap or generate 10.68% return on investment over 90 days.

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

The Gabelli Global  vs.  Nationwide Small Cap

Gabelli Global

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in The Gabelli Global are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, The Gabelli is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nationwide Small Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Nationwide Small Cap are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Nationwide Small may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with The Gabelli and Nationwide Small

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

The idea behind The Gabelli Global and Nationwide Small 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.