Pair Correlation Between NQEGT and NIKKEI 225 |
This module allows you to analyze existing cross correlation between NQEGT and NIKKEI 225. You can compare the effects of market volatilities on NQEGT and NIKKEI 225 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 NQEGT with a short position of NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of NQEGT and NIKKEI 225.
| Time Horizon | 30 Days Login to change |
| Symbols | vs |
NQEGT vs. NIKKEI 225
Pair Volatility
Assuming 30 trading days horizon, NQEGT is expected to generate 0.83 times more return on investment than NIKKEI 225. However, NQEGT is 1.21 times less risky than NIKKEI 225. It trades about 0.49 of its potential returns per unit of risk. NIKKEI 225 is currently generating about 0.02 per unit of risk. If you would invest 116,959 in NQEGT on March 28, 2018 and sell it today you would earn a total of 25,659 from holding NQEGT or generate 21.94% return on investment over 30 days.
Pair Corralation between NQEGT and NIKKEI 225
1.0
| Time Period | 2 Months [change] |
| Direction | Positive |
| Strength | Very Strong |
| Accuracy | 83.64% |
| Values | Daily Returns |
Diversification
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding NQEGT and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 and NQEGT 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 NQEGT are associated (or correlated) with NIKKEI 225. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIKKEI 225 has no effect on the direction of NQEGT i.e. NQEGT and NIKKEI 225 go up and down completely randomly.
Comparative Volatility
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See also your portfolio center. Please also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.