This module allows you to analyze existing cross correlation between NIKKEI 225 and XU100. You can compare the effects of market volatilities on NIKKEI 225 and XU100 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 XU100. See also your portfolio center. Please also check ongoing floating volatility patterns of NIKKEI 225 and XU100.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, NIKKEI 225 is expected to under-perform the XU100. In addition to that, NIKKEI 225 is 1.31 times more volatile than XU100. It trades about -0.28 of its total potential returns per unit of risk. XU100 is currently generating about -0.08 per unit of volatility. If you would invest 11,840,006 in XU100 on January 23, 2018 and sell it today you would lose (208,408) from holding XU100 or give up 1.76% of portfolio value over 30 days.