Correlation Analysis Between NIKKEI 225 and Stockholm

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

NIKKEI 225  vs.  Stockholm

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, NIKKEI 225 is expected to generate 1.06 times more return on investment than Stockholm. However, NIKKEI 225 is 1.06 times more volatile than Stockholm. It trades about -0.23 of its potential returns per unit of risk. Stockholm is currently generating about -0.32 per unit of risk. If you would invest  2,386,993  in NIKKEI 225 on September 22, 2018 and sell it today you would lose (133,785)  from holding NIKKEI 225 or give up 5.6% of portfolio value over 30 days.

Pair Corralation between NIKKEI 225 and Stockholm

Time Period1 Month [change]
ValuesDaily Returns


Very poor diversification

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

Comparative Volatility

 Predicted Return Density 

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