This module allows you to analyze existing cross correlation between NIKKEI 225 and Russell 2000 . You can compare the effects of market volatilities on NIKKEI 225 and Russell 2000 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 Russell 2000. See also your portfolio center. Please also check ongoing floating volatility patterns of NIKKEI 225 and Russell 2000.
|Time Horizon||30 Days Login to change|
NIKKEI 225 vs. Russell 2000
Assuming 30 trading days horizon, NIKKEI 225 is expected to generate 6.94 times less return on investment than Russell 2000. But when comparing it to its historical volatility, NIKKEI 225 is 1.21 times less risky than Russell 2000. It trades about 0.01 of its potential returns per unit of risk. Russell 2000 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 152,999 in Russell 2000 on March 21, 2018 and sell it today you would earn a total of 4,383 from holding Russell 2000 or generate 2.86% return on investment over 30 days.