Pair Correlation Between EURONEXT BEL-20 and NIKKEI 225

This module allows you to analyze existing cross correlation between EURONEXT BEL-20 and NIKKEI 225. You can compare the effects of market volatilities on EURONEXT BEL-20 and NIKKEI 225 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 EURONEXT BEL-20 with a short position of NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of EURONEXT BEL-20 and NIKKEI 225.
 Time Horizon     30 Days    Login   to change
 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, EURONEXT BEL-20 is expected to generate 0.71 times more return on investment than NIKKEI 225. However, EURONEXT BEL-20 is 1.41 times less risky than NIKKEI 225. It trades about 0.0 of its potential returns per unit of risk. NIKKEI 225 is currently generating about -0.1 per unit of risk. If you would invest  392,246  in EURONEXT BEL-20 on February 18, 2018 and sell it today you would lose (182.01)  from holding EURONEXT BEL-20 or give up 0.05% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between EURONEXT BEL-20 and NIKKEI 225


Time Period1 Month [change]
StrengthVery Strong
ValuesDaily Returns


No risk reduction

Overlapping area represents the amount of risk that can be diversified away by holding EURONEXT BEL-20 and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 and EURONEXT BEL-20 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 EURONEXT BEL-20 are associated (or correlated) with NIKKEI 225. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIKKEI 225 has no effect on the direction of EURONEXT BEL-20 i.e. EURONEXT BEL-20 and NIKKEI 225 go up and down completely randomly.

Comparative Volatility

 Predicted Return Density