This module allows you to analyze existing cross correlation between NIKKEI 225 and SPTSX Comp. You can compare the effects of market volatilities on NIKKEI 225 and SPTSX Comp 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 SPTSX Comp. See also your portfolio center. Please also check ongoing floating volatility patterns of NIKKEI 225 and SPTSX Comp.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, NIKKEI 225 is expected to generate 2.82 times more return on investment than SPTSX Comp. However, NIKKEI 225 is 2.82 times more volatile than SPTSX Comp. It trades about 0.24 of its potential returns per unit of risk. SPTSX Comp is currently generating about 0.14 per unit of risk. If you would invest 2,290,276 in NIKKEI 225 on December 22, 2017 and sell it today you would earn a total of 90,530 from holding NIKKEI 225 or generate 3.95% return on investment over 30 days.