This module allows you to analyze existing cross correlation between Russell 2000 and NIKKEI 225. You can compare the effects of market volatilities on Russell 2000 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 Russell 2000 with a short position of NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of Russell 2000 and NIKKEI 225.
|Investment Horizon||30 Days Login to change|
Given the investment horizon of 30 days, Russell 2000 is expected to under-perform the NIKKEI 225. But the index apears to be less risky and, when comparing its historical volatility, Russell 2000 is 1.35 times less risky than NIKKEI 225. The index trades about -0.04 of its potential returns per unit of risk. The NIKKEI 225 is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,144,852 in NIKKEI 225 on October 19, 2017 and sell it today you would earn a total of 94,828 from holding NIKKEI 225 or generate 4.42% return on investment over 30 days.