Correlation Between Midcap Growth and Nationwide Fund

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

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

Diversification Opportunities for Midcap Growth and Nationwide Fund

-0.16

Correlation Coefficient

Midcap Growth  Nationwide Fund

Good diversification

The 3 months correlation between Midcap and Nationwide is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Midcap Growth Fund and Nationwide Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Fund Class and Midcap Growth 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 Midcap Growth Fund 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 Class has no effect on the direction of Midcap Growth i.e., Midcap Growth and Nationwide Fund go up and down completely randomly.

Pair Corralation between Midcap Growth and Nationwide Fund

Assuming the 90 days horizon Midcap Growth is expected to generate 6.31 times less return on investment than Nationwide Fund. In addition to that, Midcap Growth is 1.95 times more volatile than Nationwide Fund Class. It trades about 0.01 of its total potential returns per unit of risk. Nationwide Fund Class is currently generating about 0.07 per unit of volatility. If you would invest  2,476  in Nationwide Fund Class on September 6, 2025 and sell it today you would earn a total of  956.00  from holding Nationwide Fund Class or generate 38.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	89.27%
Values	Daily Returns

Midcap Growth Fund  vs.  Nationwide Fund Class

Midcap Growth

Risk-Adjusted Performance

Weakest

Over the last 90 days Midcap Growth Fund 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 basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the fund investors.

Nationwide Fund Class

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Nationwide Fund Class are ranked lower than 5 (%) 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.

Pair Trading with Midcap Growth and Nationwide Fund

The main advantage of trading using opposite Midcap Growth and Nationwide Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Midcap Growth 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 Midcap Growth Fund and Nationwide Fund Class 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.

Check out your portfolio center.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.