Correlation Between Nationwide Bailard and Dunham Enhanced

Can any of the company-specific risk be diversified away by investing in both Nationwide Bailard and Dunham Enhanced 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 Dunham Enhanced 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 Dunham Enhanced Market, you can compare the effects of market volatilities on Nationwide Bailard and Dunham Enhanced 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 Dunham Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Bailard and Dunham Enhanced.

Diversification Opportunities for Nationwide Bailard and Dunham Enhanced

0.58

Correlation Coefficient

Nationwide Bailard  Dunham Enhanced

Very weak diversification

The 3 months correlation between Nationwide and Dunham is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Bailard Technology and Dunham Enhanced Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Enhanced Market 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 Dunham Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Enhanced Market has no effect on the direction of Nationwide Bailard i.e., Nationwide Bailard and Dunham Enhanced go up and down completely randomly.

Pair Corralation between Nationwide Bailard and Dunham Enhanced

Assuming the 90 days horizon Nationwide Bailard is expected to generate 1.58 times less return on investment than Dunham Enhanced. In addition to that, Nationwide Bailard is 1.54 times more volatile than Dunham Enhanced Market. It trades about 0.04 of its total potential returns per unit of risk. Dunham Enhanced Market is currently generating about 0.1 per unit of volatility. If you would invest  1,590  in Dunham Enhanced Market on September 10, 2025 and sell it today you would earn a total of  87.00  from holding Dunham Enhanced Market or generate 5.47% return on investment over 90 days.

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

Nationwide Bailard Technology  vs.  Dunham Enhanced Market

Nationwide Bailard

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Nationwide Bailard Technology are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Nationwide Bailard is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dunham Enhanced Market

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Dunham Enhanced Market are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Dunham Enhanced 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 Bailard and Dunham Enhanced

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

The idea behind Nationwide Bailard Technology and Dunham Enhanced Market 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.