Pair Correlation Between NIKKEI 225 and Russia TR

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

Pair Volatility

Assuming 30 trading days horizon, NIKKEI 225 is expected to generate 3.34 times less return on investment than Russia TR. In addition to that, NIKKEI 225 is 1.04 times more volatile than Russia TR. It trades about 0.23 of its total potential returns per unit of risk. Russia TR is currently generating about 0.8 per unit of volatility. If you would invest  101,411  in Russia TR on December 20, 2017 and sell it today you would earn a total of  15,842  from holding Russia TR or generate 15.62% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between NIKKEI 225 and Russia TR
0.9

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy86.96%
ValuesDaily Returns

Diversification

Almost no diversification

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

 Predicted Return Density 
      Returns