Pair Correlation Between NIKKEI 225 and NZSE

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

Pair Volatility

Assuming 30 trading days horizon, NIKKEI 225 is expected to generate 2.87 times less return on investment than NZSE. In addition to that, NIKKEI 225 is 2.14 times more volatile than NZSE. It trades about 0.06 of its total potential returns per unit of risk. NZSE is currently generating about 0.38 per unit of volatility. If you would invest  806,333  in NZSE on February 15, 2018 and sell it today you would earn a total of  40,400  from holding NZSE or generate 5.01% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between NIKKEI 225 and NZSE


Time Period1 Month [change]
StrengthVery Weak
ValuesDaily Returns


Modest diversification

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

Comparative Volatility

 Predicted Return Density