Correlation Between Nationwide Mutual and Mid Cap

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

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

Diversification Opportunities for Nationwide Mutual and Mid Cap

0.27

Correlation Coefficient

Nationwide Mutual  Mid Cap

Modest diversification

The 3 months correlation between Nationwide and Mid is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Mutual Funds and Mid Cap Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Index and Nationwide Mutual 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 Mutual Funds are associated (or correlated) with Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Index has no effect on the direction of Nationwide Mutual i.e., Nationwide Mutual and Mid Cap go up and down completely randomly.

Pair Corralation between Nationwide Mutual and Mid Cap

If you would invest  2,275  in Mid Cap Index on May 5, 2025 and sell it today you would earn a total of  145.00  from holding Mid Cap Index or generate 6.37% return on investment over 90 days.

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

Nationwide Mutual Funds  vs.  Mid Cap Index

Nationwide Mutual Funds

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nationwide Mutual Funds has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Nationwide Mutual is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mid Cap Index

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mid Cap Index are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Mid Cap may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Nationwide Mutual and Mid Cap

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

The idea behind Nationwide Mutual Funds and Mid Cap Index 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 Global Correlations module to find global opportunities by holding instruments from different markets.