Correlation Between Nationwide Fund and Quantitative

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

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

Diversification Opportunities for Nationwide Fund and Quantitative

0.92

Correlation Coefficient

Nationwide Fund  Quantitative

Almost no diversification

The 3 months correlation between Nationwide and Quantitative is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Fund Class and Quantitative U S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantitative U S and Nationwide 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 Nationwide Fund Class are associated (or correlated) with Quantitative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantitative U S has no effect on the direction of Nationwide Fund i.e., Nationwide Fund and Quantitative go up and down completely randomly.

Pair Corralation between Nationwide Fund and Quantitative

Assuming the 90 days horizon Nationwide Fund Class is expected to generate 0.75 times more return on investment than Quantitative. However, Nationwide Fund Class is 1.33 times less risky than Quantitative. It trades about 0.16 of its potential returns per unit of risk. Quantitative U S is currently generating about 0.12 per unit of risk. If you would invest  3,195  in Nationwide Fund Class on July 2, 2025 and sell it today you would earn a total of  173.00  from holding Nationwide Fund Class or generate 5.41% return on investment over 90 days.

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

Nationwide Fund Class  vs.  Quantitative U S

Nationwide Fund Class

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nationwide Fund Class are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Nationwide Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Quantitative U S

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Quantitative U S are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Quantitative is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nationwide Fund and Quantitative

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

The idea behind Nationwide Fund Class and Quantitative U S 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.