Correlation Analysis Between Israel Index and NIKKEI 225

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

Israel Index  vs.  NIKKEI 225

 Performance (%) 
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Pair Volatility

Assuming 30 trading days horizon, Israel Index is expected to generate 1.28 times more return on investment than NIKKEI 225. However, Israel Index is 1.28 times more volatile than NIKKEI 225. It trades about -0.05 of its potential returns per unit of risk. NIKKEI 225 is currently generating about -0.11 per unit of risk. If you would invest  108,294  in Israel Index on July 17, 2018 and sell it today you would lose (1,126)  from holding Israel Index or give up 1.04% of portfolio value over 30 days.

Pair Corralation between Israel Index and NIKKEI 225

0.21
Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy76.67%
ValuesDaily Returns

Diversification

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding Israel Index and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 and Israel Index 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 Israel Index 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 Israel Index i.e. Israel Index and NIKKEI 225 go up and down completely randomly.
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Comparative Volatility

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GOOG - USA Stock
Alphabet
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IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1214.38

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