Pair Correlation Between NIKKEI 225 and Bovespa

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

Pair Volatility

Assuming 30 trading days horizon, NIKKEI 225 is expected to under-perform the Bovespa. In addition to that, NIKKEI 225 is 1.37 times more volatile than Bovespa. It trades about -0.1 of its total potential returns per unit of risk. Bovespa is currently generating about 0.01 per unit of volatility. If you would invest  8,479,271  in Bovespa on February 17, 2018 and sell it today you would earn a total of  5,206  from holding Bovespa or generate 0.06% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between NIKKEI 225 and Bovespa


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 NIKKEI 225 and Bovespa in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bovespa and NIKKEI 225 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 NIKKEI 225 are associated (or correlated) with Bovespa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bovespa has no effect on the direction of NIKKEI 225 i.e. NIKKEI 225 and Bovespa go up and down completely randomly.

Comparative Volatility

 Predicted Return Density