Correlation Analysis Between NIKKEI 225 and FTSE MIB

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

NIKKEI 225  vs.  FTSE MIB

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, NIKKEI 225 is expected to generate 0.01 times more return on investment than FTSE MIB. However, NIKKEI 225 is 78.04 times less risky than FTSE MIB. It trades about -0.03 of its potential returns per unit of risk. FTSE MIB is currently generating about -0.58 per unit of risk. If you would invest  2,268,974  in NIKKEI 225 on May 23, 2018 and sell it today you would lose (17,291)  from holding NIKKEI 225 or give up 0.76% of portfolio value over 30 days.

Pair Corralation between NIKKEI 225 and FTSE MIB

-0.65
Time Period1 Month [change]
DirectionNegative 
StrengthWeak
Accuracy9.68%
ValuesDaily Returns

Diversification

Excellent diversification

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

Comparative Volatility

My Equities

My Current Equities and Potential Positions
View AllNext
GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1155.48

Thematic Opportunities

Explore Investment Opportunities
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.