Correlation Analysis Between NIKKEI 225 and OMXRGI

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

 Predicted Return Density 
      Returns 

NIKKEI 225  vs.  OMXRGI

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, NIKKEI 225 is expected to under-perform the OMXRGI. In addition to that, NIKKEI 225 is 1.15 times more volatile than OMXRGI. It trades about -0.08 of its total potential returns per unit of risk. OMXRGI is currently generating about -0.05 per unit of volatility. If you would invest  96,324  in OMXRGI on November 18, 2018 and sell it today you would lose (1,806)  from holding OMXRGI or give up 1.87% of portfolio value over 30 days.

Pair Corralation between NIKKEI 225 and OMXRGI

0.68
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy78.79%
ValuesDaily Returns

Diversification Opportunities for NIKKEI 225 and OMXRGI

NIKKEI 225 diversification synergy

Poor diversification

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