Correlation Between Nationwide Nasdaq and Regents Park

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Nationwide Nasdaq and Regents Park 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 Nasdaq and Regents Park into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide Nasdaq 100 Risk Managed and Regents Park Hedged, you can compare the effects of market volatilities on Nationwide Nasdaq and Regents Park 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 Nasdaq with a short position of Regents Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Nasdaq and Regents Park.

Diversification Opportunities for Nationwide Nasdaq and Regents Park

0.98
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Nationwide and Regents is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Nasdaq 100 Risk Man and Regents Park Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regents Park Hedged and Nationwide Nasdaq 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 Nasdaq 100 Risk Managed are associated (or correlated) with Regents Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regents Park Hedged has no effect on the direction of Nationwide Nasdaq i.e., Nationwide Nasdaq and Regents Park go up and down completely randomly.

Pair Corralation between Nationwide Nasdaq and Regents Park

Given the investment horizon of 90 days Nationwide Nasdaq is expected to generate 158.0 times less return on investment than Regents Park. In addition to that, Nationwide Nasdaq is 1.14 times more volatile than Regents Park Hedged. It trades about 0.0 of its total potential returns per unit of risk. Regents Park Hedged is currently generating about 0.03 per unit of volatility. If you would invest  1,000.00  in Regents Park Hedged on April 22, 2024 and sell it today you would earn a total of  3.00  from holding Regents Park Hedged or generate 0.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Nationwide Nasdaq 100 Risk Man  vs.  Regents Park Hedged

 Performance 
       Timeline  
Nationwide Nasdaq 100 

Risk-Adjusted Performance

23 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Nationwide Nasdaq 100 Risk Managed are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Nationwide Nasdaq may actually be approaching a critical reversion point that can send shares even higher in August 2024.
Regents Park Hedged 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Regents Park Hedged are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting technical indicators, Regents Park may actually be approaching a critical reversion point that can send shares even higher in August 2024.

Nationwide Nasdaq and Regents Park Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nationwide Nasdaq and Regents Park

The main advantage of trading using opposite Nationwide Nasdaq and Regents Park positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Nasdaq position performs unexpectedly, Regents Park 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 Regents Park will offset losses from the drop in Regents Park's long position.
The idea behind Nationwide Nasdaq 100 Risk Managed and Regents Park Hedged 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Other Complementary Tools

Fundamental Analysis
View fundamental data based on most recent published financial statements
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.